The stock market, which took a hit Monday, is not reacting to the "unbelievable" strength of President Donald Trump's economic agenda, senior White House economic official Peter Navarro told CNBC.

Equities tanked Monday as fears of a possible trade war and regulation of the tech industry weighed on investors.

In an interview with "Closing Bell," Navarro said Trump's "singular focus is on economic growth, rising wages and a strong manufacturing and defense industrial base."

"If we hit all points … the market will go up."

The Dow Jones industrial average plunged 459 points on Monday, after falling as much as 758.59 earlier in the day. The dropped 2.2 percent and re-entered correction territory. The Nasdaq composite dropped 2.7 percent.

A White House official who declined to be named told CNBC on Monday: "We're focused on long-term fundamentals. We're not really reacting to market fluctuations."

Navarro, director of the White House National Trade Council, however suggested investors may be overreacting.

"Everybody needs to relax and kind of look the chess board here. This economy is just strong," he said.

If fact, he said if he if put on his old hat as a financial market analyst, "I'm thinking the smart money is certainly going to buy on the dips here because the economy is as strong as an ox."