U.S. stocks dropped again during Monday's trading session as ongoing tariff concerns continued to fuel uncertainty and rattle the broader market averages.

At the end of the trading session the blue-chip Dow (DJI) finished lower by 0.9%, the benchmark S&P 500 (SP500) ended in the red by 0.2%, and the tech-heavy Nasdaq Composite (COMP:IND) concluded higher by 0.1%.

In the early morning all three major averages were lower by more than 4% but then in a kneejerk all three index’s rocketed higher up into the green after an unconfirmed report of a 90-day pause in implementation of tariffs surfced. The report was unconfirmed but passed along by CNBC, which then reported that the White House was denying the pause. The White House later came out and called the report fake,

From a S&P sector vantage point, nine of the 11 S&P segments closed out the day in the red as Real Estate struggled the most. Over at the other end, Communication Services was the best performing sector.

Bond yields pushed up higher as the popular U.S. 10-Year Treasury yield (US10Y) rose by 21 basis points to 4.21%. At the same time the shorter end U.S. 2-Year Treasury yield (US2Y) gained 14 basis point to 3.78%.

See how yields trade across the entire curve here on Seeking Alpha’s bond page.

Volatility also spiked on Monday, with the VIX, Wall Street’s “fear gauge,” surpassing 50 points amid the broader selloff in equities, sparked by Trump's aggressive tariff proposals. 

Oil prices also took a hit. At one point the commodity dropped below $60 per barrel, as rising trade tensions stoked fears of a global economic slowdown. Oil ended lower by 2.2%. 

“After a big gap down in pre-market, equities surged higher as investors/traders rotated out of treasury bonds, with the 10-year US treasury yield now sitting at pre-Liberation Day levels. Given negative investor sentiment, a tactical bounce off of the 2021 market highs seems likely; however, investors and traders must remain nimble in this highly uncertain macroeconomic and geopolitical environment," Ahan Vashi, Investing Group Leader for The Quantamental Investor stated.

Cantor Fitzgerald doubled down on its bearish stance toward stocks on Monday, reaffirming its negative outlook with the statement, “we continue to be bearish on equities.” 

On the tariff front, billionaire investor Stanley Druckenmiller expressed opposition to tariffs exceeding 10%, stating, “In a perfect world, I would not be for a 10%, but we're not in a perfect world.” Meanwhile, hedge fund manager Bill Ackman issued a stern warning about the potential economic fallout from Trump's escalating tariff strategy. 

Looking ahead, tariffs are set to remain the dominant theme this week, with markets closely watching for retaliatory actions from other nations. China's response last week was a major factor in the latest selloff, and any further retaliation could heighten the risk of additional U.S. tariff hikes, as warned by Deutsche Bank’s Henry Allen. 

The economic calendar is relatively light on Monday, with the focus shifting to the CPI and PPI inflation reports set to be released later in the week. 

As for stocks that were on the move, MicroStrategy Incorporated (MSTR) fell 8.6% while shares of Super Micro Computer (SMCI) rallied higher by 10.6%.