Bears swatted the U.S. stock indexes every which way but up Monday, leaving no doubt who was in charge.
XThe Nasdaq staggered 2.1% lower, while the S&P 500 and the Dow Jones industrial average lost 1.4% and 1.3%, respectively. The small-cap S&P 600 dropped 1.7%. The Dow Jones utility average rose 1.6%.
Volume was running higher on both major exchanges, but Friday's rebalancing of the Russell indexes made lower volume likely for the session.
Market watchers pinned most of the blame for the heavy selling on President Trump. The idea that Trump is using a bluffing strategy to gain the U.S. an edge in trade negotiations appears to be crumbling. The alternative is conviction that Trump is a true believer on protectionism.
That could crank up the trade war to more damaging levels.
Among IBD's 197 industry groups Monday, declining issues led rising issues by an almost 11-to-1 ratio. The day's sharpest losses came among specialty steel and steel producers.
Stock groups rising were comprised mostly of defensive stocks. Utilities, soap and food grabbed seven of the day's top 10 industry groups.
Leading Stocks
In the IBD 50, a list of some of the best stocks by fundamentals and technicals, only two stocks advanced.
Upscale outerwear provider Canada Goose (GOOS) rose 2.2% in heavy volume. The stock is well-extended from a May breakout but 14% off its all-time high.
Lululemon Athletica (LULU), another apparel retailer, crept up 0.6% in quiet volume. The stock is extended from a March breakout and 4% off its high.
On the negative side, China-based stocks had a rough day. The seven China-based stocks in the IBD 50 each lost ground. Losses ranged from a 0.9% scrape for express delivery service ZTO Express (ZTO) to a 10% dent for e-commerce solutions provider Baozun (BZUN).
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