The Dow fell more than 200 points Monday, on track for its biggest point and percentage drop since Oct. 18, after U.S. manufacturing data showed a continued contraction in November, putting all three major benchmark indexes on track for a second session of losses.

Investors also were monitoring trade concerns after President Donald Trump announced via Twitter that the U.S. would restore tariffs on all steel and aluminum shipped into the U.S. from Brazil and Argentina.

What are major indexes doing?

The Dow Jones Industrial Average DJIA, -0.72% fell 205 points, or 0.7%, to 27,847, while the S&P 500 index SPX, -0.69% lost 22 points, or 0.7%, to 3,118. The Nasdaq Composite Index COMP, -1.03% fell 90 points or 1%, to 8,574.

Stocks ended lower in an abbreviated session Friday following the Thanksgiving Day holiday, but posted solid November gains. The Dow fell 112.59 points on Friday, or 0.4%, to end at 28,051.41, leaving it with a 3.7% monthly gain. The S&P 500 declined 12.65 points, or 0.4%, to close at 3,140.98, booking a 3.4% monthly rise. The Nasdaq Composite lost 39.70 points, or 0.5%, to end at 8,665.47, notching a 4.5% monthly gain.

Read: Will a Santa Claus rally power the S&P 500 and Dow to their best years in a generation?

What’s driving the market?

Stocks were pulled lower by a disappointing U.S. manufacturing survey data that pointed to a fourth straight month of contraction for the sector, with the Institute for Supply Management’s purchasing manager’s index unexpectedly falling to 48.1% in November from 48.3% in October. Economists polled by MarketWatch expected a reading of 49.2%. Readings below 50% reflect business conditions worsening.

“The ISM report wasn’t encouraging, especially if you look at the new orders component,” said Shawn Cruz, manager of trader strategy at TD Ameritrade, in an interview. “Construction also came in on the downside. This puts pressure on the other data points due this week, like the jobs numbers on Friday. Consumer sentiment will be another important data point on Friday.”

The data overshadowed a separate survey on U.S. manufacturing released by Markit on Monday, which showed the sector gaining steam, with a 52.6 reading, versus October’s 52.2.

Andrew Hunter, senior U.S. economist at Capital Economics, cautioned that manufacturing still wasn’t “out of the woods” in a client note on Monday and warned that conditions underlying manufacturing “remain unusually weak.”

Adding to the jitters are higher U.S. stock valuation levels, which Cruz warned can make “the market prone to sudden, fast corrections,” particularly if investors think the slowdown in manufacturing is accelerating, or there are concerns about the health of the consumer.

Investors also got a sharp reminder of the potential for negative trade headlines, with earlier stock gains erased after Trump accused Brazil and Argentina of “presiding over a massive devaluation of their currencies, which is not good for our farmers.” Trump tweeted that, effective immediately, “I will restore Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries.”

See: Trump brings back tariffs on Brazil and Argentina as deadline for China levies approaches

Also read: Don’t be so bullish, this economist says — the trade news isn’t that good

Meanwhile, China is insisting that U.S. tariffs be rolled back as part of any “phase one” trade deal, China’s state-run Global Times said Sunday. And Axios reported Sunday that deal is unlikely to be agreed upon before late December, but that Trump is expected to put off tariff hikes scheduled to take effect Dec. 15 to keep negotiations alive.

Read: Don’t be so bullish, this economist says — the trade news isn’t that good

U.S. stock indexes initially gained ground in premarket action Monday after data showed a pickup in manufacturing activity in China. The Caixin manufacturing purchasing managers index rose to 51.8 in November from 51.7 in October, said Caixin Media Co. and research firm Markit on Monday — with the reading remained above the 50 level that separates expansion from contraction. Earlier, China’s official manufacturing PMI reading moved back into expansion activity, rising to 50.2 in November from 49.3, according to the country’s National Bureau of Statistics, marking the first reading above 50 for the index since April.

Investors also were tracking retail stocks as Cyber Monday holiday shopping day got under way. Adobe Analytics said this year’s Black Friday was the biggest ever for online sales, coming in at $7.4 billion and ranking just behind last year’s haul of $7.9 billion. Adobe forecasts online sales to hit $9.4 billion this Cyber Monday.

In other economic data, the government said construction spending fell 0.8% in October from a 0.3% decline in September. Economists were expecting a 0.4% increase, according to a MarketWatch poll.

Which stocks are in focus?

Dow component Intel Corp.’s INTC, -0.48%  stock fell 0.6% Monday after it announced the completion of the sale of the majority of its smartphone modem business to Apple, a $1 billion deal announced July 25.

Shares of Wells Fargo & Co. WFC, -1.06%  dropped 1.1% Monday, after Raymond James analyst David Long cut his rating on the bank’s stock from to underperform from market perform.

McDermott International Inc. MDR, +6.61%  stock rallied 4.9%, after the energy-services company announced access to $350 million in financing and a forbearance agreement with some of its creditors. Inc. AMZN, -1.38%  stock was down 1.4% as Cyber Monday got under way, one of the most important days of the year for the online retail giant.

See: Amazon pulls Auschwitz ‘Christmas ornaments’ after protest

Twinkie maker Hostess Brands TWNK, +2.27%  stock gained 2.3% after the snack-food maker said it wanted to buy Voortman Cookies from Swander Pace Capital for $320 million (C$425 million) in cash.

Shares of Roku Inc. ROKU, -13.09%  were down 12.7% after Morgan Stanley analysts said stock of the TV-viewing platform looked too expensive and likely was head into reverse as competition from other steaming services and apps heats up.

Shares of Apache Corp. APA, -13.08%  plunged 14% after the firm gave an update on the status of a new offshore well, Maka Central #1, off the coast of Suriname, but provided no new information on site’s potential profitability.

How are other markets trading?

The yield on the 10-year U.S. Treasury note TMUBMUSD10Y, +2.37%  rose 4.9 basis points to 1.827% but trimmed its initial rise after the U.S. ISM data. Yields and bond prices move in opposite directions.

In commodities markets, the price of West Texas Intermediate crude oil for January delivery CLF20, +1.23%  rose $0.71, or 1.3%, to $55.88 a barrel on rising hopes for global growth. The price of an ounce of gold for December delivery GCZ19, -0.17%  fell $3.10, or 0.2%, to $1,469.60 as demand for havens waned.

The U.S. dollar edged 0.3% lower, according to the ICE U.S. Dollar index DXY, -0.41%.

In Asia, stocks closed mostly higher, with the China CSI 300 000300, +0.19%  rising 0.1%, Japan’s Nikkei 225 NIK, +1.01%  adding 1% and Hong Kong’s Hang Seng Index HSI, +0.37%  gaining 0.4%. European stocks traded mostly lower, reflected by the 1.1% decline for the Stoxx Europe 600 SXXP, -1.58%.