Stocks have moved mostly lower over the course of morning trading on Monday, extending the pullback seen in the previous session. The major averages continue to give back ground after reaching record highs last Wednesday.
Currently, the major averages are just off their lows of the session. The Dow is down 210.10 points or 0.8 percent at 27,841.31, the Nasdaq is down 117.44 points or 1.4 percent at 8,548.03 and the S&P 500 is down 27.17 points or 0.9 percent at 3,113.81.
The weakness on Wall Street comes following the release of a report from the Institute for Supply Management showing a continued contraction in U.S. manufacturing activity in the month of November.
The ISM said its purchasing managers index edged down to 48.1 in November from 48.3 in October, with a reading below 50 indicating a contraction in manufacturing activity. Economists had expected the index to inch up to 49.2.
"November was the fourth consecutive month of PMI contraction, at a faster rate compared to the prior month," said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee. "Global trade remains the most significant cross-industry issue."
A separate report released by the Commerce Department showed an unexpected decrease in U.S. construction spending in the month of October.
The disappointing U.S. economic news has offset the earlier positive sentiment generated by some upbeat Chinese manufacturing data.
Traders are also reacting to President Donald Trump announcing plans to reinstate tariffs on metal imports from Brazil and Argentina.
"Brazil and Argentina have been presiding over a massive devaluation of their currencies. which is not good for our farmers," Trump said in a post on Twitter.
He added, "Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries."
Software stocks are turning in some of the market's worst performances in morning trading, dragging the Dow Jones U.S. Software Index down by 1.9 percent.
Telecom, networking and semiconductor stocks are also seeing considerable weakness, moving lower along with most of the other major sectors.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index jumped by 1 percent, while Hong Kong's Hang Seng Index rose by 0.4 percent.
Meanwhile, the major European markets have moved sharply lower over the course of the session. While the U.K.'s FTSE 100 Index slid by 0.7 percent, the German DAX Index and the French CAC 40 Index are both down by 1.8 percent.
In the bond market, treasuries are seeing notable weakness despite the disappointing economic data. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 5.5 basis points at 1.831 percent.