U.S. stocks fell on Monday as a drop in oil prices dragged energy stocks lower, while the risk of an escalating tariff war between Washington and its trading partners continued to weigh on the broader market sentiment.
The United States' decision to impose tariffs on $34 billion worth of Chinese goods will come into effect on July 6, posing threats of a similar response from Beijing.
Meanwhile, the European Union has threatened to hit the United States with almost $300 billion in retaliatory tariffs, while Canada has vowed to slap punitive measures on $12.63 billion worth of American goods in response to U.S. steel and aluminum tariffs.
"I think it's (the market's decline) a continued reaction to the trade policy situation," said Brad McMillan, chief investment officer for Commonwealth Financial.
"We see the United States announce certain unilateral actions, then we&…