On Monday, US benchmark equity indexes are experiencing a notable downturn, chiefly influenced by a significant selloff in Nvidia shares as investors react to the most recent data from the manufacturing sector. The Dow Jones Industrial Average has decreased by 1.7%, settling at 43,084, whereas the Nasdaq Composite has encountered a steeper decline of 2.7%, now positioned at 18,338.2.
The S&P 500 has also witnessed a drop of 2%, reaching 5,837.1. Despite these overall declines, sectors such as energy, consumer staples, and real estate recorded gains, while energy and technology faced the most substantial downturns. Particularly, Super Micro Computer emerged as the most significant loser within the S&P 500, showing a decrease of over 11%.
This slump can be attributed to reports indicating that servers involved in a fraudulent case in Singapore were supplied by the company alongside Dell Technologies and may have included Nvidia chips. In contrast, Verizon saw a more optimistic outcome, with its shares rising over 1.4%. This uptick came a day after Lockheed Martin announced a collaboration with Nokia and Verizon to integrate Nokia's 5G technology into its 5G.MIL Hybrid Base Station, which is designed to bridge commercially available 5G connectivity with military communication systems.
Additionally, the 10-year US Treasury yield decreased by 0.05 basis points to 4.2%, while the two-year rate fell by 0.06, now around 3.9%. Meanwhile, April West Texas Intermediate crude oil prices dipped by 2.3%, stabilizing at $68.13 a barrel..