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Markets slip after Trump's immigration order, but experts say investors shouldn't panic

Investors shouldn't be overly worried about the market reaction to President Donald Trump's executive order related to immigration from seven Muslim-majority countries, experts told CNBC.

On Monday, U.S. equities saw their worst day of 2017, as Trump's action on immigration sent jitters through the market. The Dow Jones industrial average and S&P 500 each dropped a little more than a half a percent.

Peter Costa, president of Empire Executions and a CNBC contributor, said the market might have been a little overpriced heading into Monday's trading. He said investors may have already been looking for reasons to sell after the Dow broke through the 20,000 level last week.

"You have a lot of pushback about this immigration ban and I think that that probably stuck the administration a little bit, so people want to get out, try to get out at the top and that's all you're seeing right now. I don't think this is a pretense for what's coming up," Costa said Monday on CNBC's "Closing Bell."

Michael Farr, president of Farr, Miller & Washington, said the controversy over Trump's order was really a sign of "mismanaged messaging over the weekend."

"The message wasn't sent properly. If people had been prepared, whether they liked it or didn't like it, Wall Street can accept that. But Wall Street really reacts to surprises and a lot of people were surprised," Farr said on "Closing Bell."

Farr said he thinks the market reaction is just a hiccup and not a full reversal.

"It could become one, but not yet," Farr said.

— CNBC's Fred Imbert contributed to this report.