WASHINGTON (dpa-AFX) - Stocks moved sharply lower during trading on Monday, giving back ground after moving sharply higher over the past several sessions. The major averages moved to the downside in early trading and slid more firmly into negative territory as the day progressed.
The major averages ended the day off their worst levels of the day but still notably lower. The Dow tumbled 422.17 points or 0.9 percent to 44,406.36, the Nasdaq slumped 188.59 points or 0.9 percent to 20,412.52 and the S&P 500 slid 49.37 points or 0.8 percent to 6,229.98.
The early weakness on Wall Street partly reflect profited taking following the strong upward move seen over the past few sessions.
Stocks rallied last Thursday following the release of stronger than expected jobs data, lifting the Nasdaq and the S&P 500 to new record closing highs.
Further selling pressure was generated in afternoon trading after President Donald Trump shared screen shots on Truth Social of letter sent to various world leaders about new tariffs set to be imposed on August 1st.
Imports from Japan, South Korea, Malaysia and Kazakhstan are now set to face 25 percent tariffs, according to the letters Trump posted.
South African imports will be subject to a 30 percent tariff, while imports from Laos and Myanmar will face a 40 percent tariff, Trump's letters showed.
'What's troubling investors is Trump potentially moving the goalposts yet again,' said Dan Coatsworth, investment analyst at AJ Bell. 'He has form in constantly coming up with new terms and conditions and has now threatened an extra 10% tariff on countries who align themselves with 'anti-American policies' of BRICS nations.'
'He also suggests some tariffs could reach up to 70%, greater than the previous maximum amount on the Liberation Day menu,' he added. 'Investors would much prefer one set of rules and for the Trump administration to stick to them.'
Sector News
Computer hardware stocks showed a substantial move to the downside on the day, with the NYSE Arca Computer Hardware Index plunging by 2.2 percent after ending the previous session at its best closing level in over four months.
Significant weakness was also visible among oil service stocks, as reflected by the 2.0 percent slump by the Philadelphia Oil Service Index.
Airline, semiconductor and steel stocks also saw considerable weakness, while gold stocks bucked the downtrend amid a slight increase by the price of the precious metal.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan's Nikkei 225 Index slid by 0.6 percent, while South Korea's Kospi inched up by 0.2 percent.
The major European markets also ended the day mixed. While the U.K.'s FTSE 100 Index dipped by 0.2 percent, the French CAC 40 Index climbed by 0.4 percent and the German DAX Index jumped by 1.2 percent.
In the bond market, treasuries extended the downward trend seen over the past several sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose 4.7 basis points to 4.395 percent.
Looking Ahead
Amid another relatively quiet day on the U.S. economic front, trading on Tuesday may be impacted by reaction to any new developments with regard to trade.
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