Stocks got rocked to start the week.
Each of the major indexes fell more than 1% with the Nasdaq — which had been leading market higher in recent weeks — taking the brunt of the selling with a more than 2% drop.
The biggest loser among the FAANG names on Monday was Netflix (NFLX), which dropped more than 6% as shares of the streaming service pared their year-to-date gains from more than 100% to around 90%. Tough sledding.
Investors chalked Monday’s action up to a combination of selling the tech stocks that had been high-flying with trade tensions sitting in the background as they have for months now.
Peter Navarro, President Donald Trump’s national trade council director, said late Monday on CNBC that the administration had “no plans to impose investment restrictions on any countries that are interfering in any way with our country,” pushing stocks off their lowest levels of the day into the final hour of trading.
Navarro indicated that the market’s reaction on Monday, which he called a “very large overreaction,” was premised on fears that Trump’s trade policy would restrict foreign investment in U.S. companies.
Treasury Secretary Steven Mnuchin called this “fake news,” in a tweet on Monday.
And while Monday’s drop saw some of the market’s biggest intraday swings in months, it wasn’t totally out of character for a market that has seen way more choppy trading than investors saw last year.
As Charlie Bilello, director of research at Pension Partners, noted on Twitter on Monday, the day’s trading marked the 68th time this year the Dow has traded in a daily range larger than 1%. In all of 2017, that happened just 12 ties.
So while markets will look to bounce back on Tuesday, investors will be greeted by a few pieces of economic data with just a couple of notable earnings reports mixed in.
In the morning home price data from S&P/Case-Shiller, the Richmond Fed’s manufacturing index, and The Conference Board’s consumer confidence reading for June will all be released.
Myles Udland is a writer at Yahoo Finance. Follow him on Twitter @MylesUdland