The US markets ended lower on Monday after President Donald Trump shared letter sent to various world leaders about new tariffs set to be imposed on August 1. Investors took cautious approach as the letter indicated 25 percent tariffs on imports from Japan, South Korea, Malaysia and Kazakhstan, moreover, South African imports will be subject to a 30 percent tariff, while imports from Laos and Myanmar will face a 40 percent tariff. Besides, traders also opted to book some profit following the recent rally which saw Nasdaq and the S&P 500 closing new record highs.

On the sectoral front, computer hardware stocks showed a substantial move to the downside on the day, with the NYSE Arca Computer Hardware Index plunging by 2.2 percent after ending the previous session at its best closing level in over four months. Further, significant weakness was also visible among oil service stocks, as reflected by the 2.0 percent slump by the Philadelphia Oil Service Index.

Dow Jones Industrial Average tumbled 422.17 points or 0.94 percent to 44,406.36, Nasdaq slumped 188.59 points or 0.92 percent to 20,412.52 and S&P 500 slid 49.37 points or 0.79 percent to 6,229.98.