As a result of President Trump's new trade threats the markets plummeted on Monday.
Also, Harley-Davidson (HOG) , which said it would shift production of some of its Europe-bound motorcycles to international facilities.
Doug Kass: The New Regime of Volatility Is In Place
"The proximate cause for the early morning future's drop (-17 handles) is the heightened trade tension between China and the rest of the world with the U.S. - something Jim "El Capitan" Cramer and I have been consistently cautioning about," notes Real Money Pro columnist Doug Kass, author of Doug's Daily Diary.
"The leveraged ETFs and quant strategies (e.g., volatility trending and risk parity) and changing market structure may take it from there and could create a turmoil filled and volatility trading session today," Kass says.
"Donald Trump is Making Economic Uncertainty and Market Volatility Great Again as the second order impact on trade, global economic growth and business confidence is being upended at a time stocks are elevated in price and valuations (particularly against GAAP expectations)."
Small-Caps Offer Port in Stormy Trade Seas
Real Money Pro columnist Bret Jensen says that the "small-caps continue to hold up well. The Russell 2000 was almost flat on the week as investors bet this part of the market will not see the same impact from tariffs, sanctions and whatever other trade measures eventually are enacted amid the current tit-for-tat gamesmanship occurring among the major trading economies of the world. This trend has been in place for a while, and the Russell 2000, as represented by the (IWM) , has held up quite well over the past month as trade concerns have taken center stage."