On Monday, US equity indexes experienced a downturn, primarily driven by declines in the technology sector. The Nasdaq Composite dropped 0.3% to close at 18,793.9. Simultaneously, the S&P 500 also saw a minor decline of 0.1%, finishing the day at 5,954.5, while the Dow Jones Industrial Average mirrored this trend, retreating by 0.1% to 43,802.8 after midday trading.
Among the sectors, technology and energy were the most significant decliners, in contrast to real estate, which emerged as the biggest gainer during this session. In a notable turn in commodities, gold futures surged by 1.9%, rising to $2,902.10. Additionally, silver futures saw a remarkable advance of 2.9%, reaching $32.40.
This behavior in precious metals often correlates with shifts in investor sentiment during volatility in equity markets. The CBOE's volatility index, commonly referred to as VIX, which had shown a decrease earlier in the session, starkly reversed course to jump 3.9%, ending at 20.39. Such movements in the VIX reflect market anxiety and can serve as a barometer for investor fear and uncertainty. Meanwhile, US Treasury yields presented a mixed picture.
The yield on the 2-year Treasury rose slightly by one basis point, settling at 4.01%. Conversely, the yield on the 10-year Treasury fell by 3.2 basis points to 4.20%, indicating diverging expectations regarding economic growth and inflation. In terms of economic indicators, the latest data from the Institute for Supply Management revealed that the US manufacturing index saw a decline to 50.3 in February, down from 50.9 in January.
This drop was contrary to the expectations set by a Bloomberg survey, which forecasted a modest fall to 50.8, thus indicating potential cooling in manufacturing activities. In specific company news, a significant development arose concerning servers possibly implicated in a fraud case in Singapore, which reportedly may have utilized Nvidia chips.
These chips were provided by Dell Technologies and Super Micro Computer to local companies before being transported to Malaysia. Various news outlets reported on Monday, citing statements from Singapore's Home Affairs and Law Minister K. Shanmugam. The stock performance of these companies reflected the day’s tense market climate.
Shares of Super Micro plummeted by 6.1% intraday, marking it as the worst performer on the S&P 500. Nvidia’s shares followed, retreating by 4.9%, making it the steepest decliner on both the Nasdaq and the Dow. Similarly, Dell Technologies experienced a decline of 3.1% during the day. In the commodities market, West Texas Intermediate crude oil futures dipped slightly by 0.2%, closing at $69.60 a barrel, which aligns with the fluctuations seen across global markets as geopolitical factors and inventory levels continue to influence pricing dynamics..