Now playing
01:40
IBM chief on Red Hat deal: A hybrid cloud solution
A bidder holds up his bidding sign during an auction at Sotheby's in June 2004 in New York City. (Photo by Stephen Chernin/Getty Images)
Stephen Chernin/Getty Images
A bidder holds up his bidding sign during an auction at Sotheby's in June 2004 in New York City. (Photo by Stephen Chernin/Getty Images)
Now playing
04:42
Digital Artist Pak sells NFT art for $17 million at Sotheby's
People wearing face masks walk past the Bed Bath & Beyond store. Bed Bath & Beyond has announced plans to permanently close about 200 stores over the next two years. This announcement appears to be the first iteration of that plan, report says.
John Nacion/SOPA Images/Shutterstock
People wearing face masks walk past the Bed Bath & Beyond store. Bed Bath & Beyond has announced plans to permanently close about 200 stores over the next two years. This announcement appears to be the first iteration of that plan, report says.
Now playing
01:57
Don't worry, Bed Bath & Beyond coupons aren't going away
Accused $50 billion Ponzi scheme swindler Bernard Madoff exits federal court March 10, 2009 in New York City. Madoff was attending a hearing on his legal representation and is due back in court Thursday.  (Photo by Mario Tama/Getty Images)
Mario Tama/Getty Images
Accused $50 billion Ponzi scheme swindler Bernard Madoff exits federal court March 10, 2009 in New York City. Madoff was attending a hearing on his legal representation and is due back in court Thursday. (Photo by Mario Tama/Getty Images)
Now playing
03:11
Bernie Madoff, infamous Ponzi schemer, dead at 82
Now playing
05:18
Coinbase CFO: We're an on-ramp to the crypto economy
GrabBike riders wait for passengers outside a commuter train station in Jakarta on June 13, 2018. - Toyota said June 13 it was investing 1 billion USD in Asia ride-share company Grab, as the Japanese automaker looks to expand beyond its core business into the "mobility" sector. (Photo by GOH CHAI HIN / AFP)        (Photo credit should read GOH CHAI HIN/AFP via Getty Images)
Goh Chai Hin/AFP/Getty Images
GrabBike riders wait for passengers outside a commuter train station in Jakarta on June 13, 2018. - Toyota said June 13 it was investing 1 billion USD in Asia ride-share company Grab, as the Japanese automaker looks to expand beyond its core business into the "mobility" sector. (Photo by GOH CHAI HIN / AFP) (Photo credit should read GOH CHAI HIN/AFP via Getty Images)
Now playing
03:12
Grab is going public in $40 billion SPAC deal
tengler stock market correction prediction orig_00014122.png
tengler stock market correction prediction orig_00014122.png
Now playing
02:26
Here's how much this strategist expects the market to correct
barrys gym ceo pandemic fitness industry orig_00003130.png
barrys gym ceo pandemic fitness industry orig_00003130.png
Now playing
01:09
Barry's CEO: It's 'crazy' gyms got no government support
The logo of Swiss banking giant Credit Suisse is seen on October 17, 2017 in Zurich.
FABRICE COFFRINI/AFP/Getty Images
The logo of Swiss banking giant Credit Suisse is seen on October 17, 2017 in Zurich.
Now playing
02:42
Credit Suisse takes $4.7 billion hit from hedge fund collapse
The replacement of Line 3 created jobs.
Bill Weir/CNN
The replacement of Line 3 created jobs.
Now playing
01:57
Why an infrastructure bill could help jobs bounce back faster
A Deliveroo rider cycles through central London on March 26, 2021. - The meal delivery platform Deliveroo is bracing for strikes and other social actions by disgruntled riders as it gears up for a major London stock listing.  The group has come under fire for employment conditions that have already scared off a couple of large institutional investors (Photo by DANIEL LEAL-OLIVAS / AFP) (Photo by DANIEL LEAL-OLIVAS/AFP via Getty Images)
Daniel Leal-Olivas/AFP/Getty Images
A Deliveroo rider cycles through central London on March 26, 2021. - The meal delivery platform Deliveroo is bracing for strikes and other social actions by disgruntled riders as it gears up for a major London stock listing. The group has come under fire for employment conditions that have already scared off a couple of large institutional investors (Photo by DANIEL LEAL-OLIVAS / AFP) (Photo by DANIEL LEAL-OLIVAS/AFP via Getty Images)
Now playing
04:05
Deliveroo shares plunge on market debut
Now playing
03:31
Intel CEO: We're ready to go bigger and faster
Now playing
03:19
Slack CEO: We made an 'unforced error' in DM roll out
Alex Wong/Greg Nash/Pool/AFP/Getty Images
Now playing
02:57
Watch Elizabeth Warren grill Janet Yellen about risks to US financial system
tech stock investing lo toney orig_00001730.png
tech stock investing lo toney orig_00001730.png
Now playing
02:08
Tech stocks have taken a hit. Here's why that could be a buying opportunity
CNN
Now playing
03:07
Scaramucci blasts Republicans for not supporting Biden's rescue plan
(CNN Business) —  

Glee about a big tech merger sent stocks soaring Monday, but then dread about the threat of new tariffs on China sent them plunging. The Dow swung more than 900 points from its highs of the day to its lows and finished with a more than 245-point loss.

Stocks turned lower in the afternoon after Bloomberg reported that the White House is considering more tariffs on Chinese goods by December if the next round of negotiations between President Donald Trump and Chinese leader Xi Jinping do not go well.

“We’ll see what happens,” said White House Press Secretary Sarah Sanders on Monday about the meeting. “We’re not going to get ahead of those conversations.”

The S&P 500 fell 0.7% and the Nasdaq dropped 1.6%. The Dow, which had been up more than 350 points earlier Monday morning, is now more than 9% below its all time highs. Both the Dow and S&P 500 gave up their gains for the year as well.

The Dow was dragged lower in particular by Boeing (BA), which has significant exposure to China and also has the highest stock price in the Dow. Shares fell 6.6%. (The Dow is weighted by stock price, not market value like most other indexes.)

IBM’s big acquisition of cloud computing software company Red Hat for $34 billion led to a short rally earlier Monday for tech stocks that quickly fizzled.

IBM (IBM) sank more than 4% to a new multi-year low. Other tech stocks struggled too. In addition to IBM, Big Blue rival Microsoft (MSFT) fell about 3%. Shares of Dow components Apple (AAPL), Intel (INTC) and Cisco (CSCO) all finished the day lower, too.

And the damage was even more brutal for members of the so-called FANG club of momentum tech stocks.

Shares of Facebook, which will report its earnings after the closing bell Tuesday, fell 2%. Amazon shares were down 6%, Netflix’s stock fell 5% and Google owner Alphabet (GOOGL) dropped 4.5%.

Concerns that Big Blue may be paying too much for Red Hat (RHT), which soared 45%, may have hurt tech and the broader market. The IBM deal was also the main bit of news since there were no significant earnings or economic reports of note Monday.

Monday’s roller coaster moves are discouraging, especially after last week’s extreme volatility, when stocks fell for a variety of reasons.

Disappointing earnings and guidance from industrial bellwethers 3M (MMM) and Caterpillar (CAT) played a part, as did worries that tech giants like Netflix (NFLX) and Amazon (AMZN) were starting to look overvalued.

Weak housing market data hurt big bank stocks as well.