The Trump trade has turned into a Trump tantrum.
The uproar over President Donald Trump's travel ban on seven countries is making markets anxious, and traders are worried the policy will create divides among Republicans and divert attention from the Trump policies that pushed stocks higher, like tax cuts and increased fiscal spending.
They also worry it rings of a more protectionist tone that could be echoed in trade policy.
"If you say the market is 30 percent driven by fundamentals and 70 percent driven by the hopes and promises of the big three — tax cuts, infrastructure spending and deregulation, then the big three just got harder," said Art Hogan, chief market strategist at Wunderlich Securities. "If things continue to get messy in Washington, that process is going to take longer. That's what we're dealing with today."
Stocks were broadly lower Monday, with the and Dow off as much as 1 percent in their worst sell-off since Oct. 11. The dollar was weaker and Treasury yields moved lower in a slight flight-to-safety bid. The Dow transports were down more than 2.2 percent, and airlines were sharply lower. Delta Air Lines suffered a major computer outage Sunday, but all carriers were under pressure, with United Continental down more than 5 percent. "There was the issue with Delta, but it's more about whether does air travel get more complicated," said Hogan.