Stocks open lower after China slaps new tariffs on US goods
The Dow Jones industrial average fell 65 points at the open, with Walmart as the biggest decliner in the index. The S&P 500 pulled back 0.4 percent, with consumer discretionary as the worst-performing sector. The Nasdaq composite dropped 0.6 percent.
China announced overnight Monday it had implemented tariffs on 128 types of U.S. imports. The goods hit with the charges the list of products proposed by Beijing in March and comes as a direct response to President Donald Trump signing off on tariffs on imported steel and aluminum last month. China said in March that those goods had an import value of $3 billion in 2017.
Trade worries also remained after Trump linked his proposal to build a border wall between the U.S. and Mexico to ongoing NAFTA negotiations between the two countries. In a tweet Sunday, Trump said: "They must stop the big drug and people flows, or I will stop their cash cow, NAFTA. NEED WALL!"
However, "despite fears of a global trade war, guidance among the early reporting companies are taking earnings growth expectations higher," said Raich, noting companies are getting a substantial boost from lower corporate taxes.
Amazon has been one of the best-performing stocks over the past year, rising nearly 64 percent in that time period.
Tech shares continued to be under pressure on Monday, with shares of Facebook, Netflix and Alphabet all trading lower. Last month, concerns over how Facebook handles data collected from its users sent the entire sector lower. Facebook dropped 10.4 percent in March.
Elsewhere in corporate news, Humana shares jumped 6 percent following reports that Walmart was interested in acquiring the health insurer.
Though discussions remain in early stages, sources confirmed to CNBC that Walmart is interested in strengthening its existing relationship with Humana amid a rush of deal speculation in the industry.
In economic news, a March manufacturing PMI is due to be released at 9:45 a.m. ET, while a March ISM manufacturing index and a February construction spending index are both set to be released at 10 a.m. ET.
—CNBC's Cheang Ming contributed to this article.