The stock market is down sharply today after a weak report on manufacturing activity, CNNMoney reported.


The Dow Jones industrial average fell as much as 262 points Monday, or about 1.7 percent. The Standard & Poor's 500 index and Nasdaq composite index were also down nearly 2 percent.


The Institute for Supply Management's monthly index showed that manufacturing activity last month expanded at the slowest pace since May.


The Dow is down almost 7 percent from the all-time high it hit on the last day of 2013, while the S&P 500 has fallen about 5 percent from the all-time high it reached last month. Experts think the market could fall further.


What does it mean?


"Economic activity was not as strong as people expected," said Bill Schultz, chief investment officer at McQueen Ball & Associates, in an interview with Bloomberg. "People are taking a pause, reassessing where they stand."