The major averages declined, but closed well above their morning lows as investors digested fresh trade news. The Dow fell 66 points to 26,438. The S&P 500 dipped 0.4% to 2,932 while the Nasdaq Composite dropped 0.5% to 8,123.
Trade concerns weighed on investor sentiment after President Trump tweeted Sunday that the current 10% tariffs the U.S. charges on $200 billion worth of Chinese goods will rise to 25% this Friday. The Presidential tweets inspired a sharp sell-off in Asian shares overnight, with the Shanghai Composite dropping 5.6% for its worst session since 2016. The Dow shed as much as 471 points in early trading, but U.S. stocks staged an afternoon comeback following multiple reports which suggested that a Chinese trade delegation still plans to visit Washington this week. While equities recovered, the CBOE Volatility Index posted its largest single day jump of 2019, to settle at the highest level since January.
Industrials and Materials shares lagged with the trade news Monday, while Health Care was the only S&P 500 sector to finish positive. In corporate news, Sinclair Broadcast Group surged 34% to $60.48 after announcing it would acquire 21 regional sports networks from Disney. Affiliated Managers Group slid 11.6% to $97.96 after a disappointing earnings release.
Breadth was negative on issues by 8:5 on the NYSE and by 6:5 on the Nasdaq. Composite NYSE volume was 3.1 billion shares.
Treasuries strengthened, with the yield on the 10-year note declining three basis points to 2.50%. In commodities, WTI crude rose 1.4% to $62.79/barrel amid rising tensions between the U.S. and Iran.