US benchmark equity indexes experienced a decline on Monday, primarily responding to the latest data from the manufacturing sector amid a notable selloff in Nvidia shares. The Nasdaq Composite saw a fall of 2.7%, closing at 18,338.2, while the S&P 500 decreased by 2%, ending at 5,837.1. The Dow Jones Industrial Average also took a hit, dropping 1.7% to 43,084.
Among the sectors, technology experienced the most significant decline, contrasting with real estate, which led the gainers. In conjunction with these market movements, US Treasury yields also exhibited a downward trend, with the 10-year yield decreasing around 0.05 basis points to stand at 4.2%. Moreover, the two-year rate fell by 0.04, nearing 4%, signaling an adjustment in investor sentiment. From the commodities market, April West Texas Intermediate crude oil faced a drop of 2.1%, settling at $68.28 per barrel on Monday.
This decline in oil prices reflects ongoing fluctuations within the energy sector, influenced by broader economic signals. On the economic front, the manufacturing sector expanded for the second consecutive month in February, as reported by the Institute for Supply Management, despite a drop in new orders.
Many sectors are currently grappling with significant uncertainty and volatility, particularly due to both current and proposed tariffs affecting trade with Mexico and Canada, in addition to the steel and aluminum import markets. According to the S&P Global's US Manufacturing PMI report, the expansion of the US manufacturing sector accelerated in February, marked by robust rates of output and new work, alongside an uptick in costs and output prices. Company-specific news revealed that Super Micro Computer was the worst performer on the S&P 500, with its shares plummeting nearly 14%.
This drop follows reports linking servers provided by the company and Dell Technologies to a fraud case in Singapore. On the other hand, Verizon shares were uplifted by over 1.4% after Lockheed Martin announced a collaboration with Nokia and Verizon to incorporate Nokia's advanced 5G technology into its 5G.MIL Hybrid Base Station. Allegro MicroSystems experienced a positive uptick of 14% following reports that ON Semiconductor is in discussions regarding a potential acquisition of the company.
In a notable surge, Aclarion shares soared 107% after securing a commercial agreement with Scripps Health, incorporating its Nociscan technology platform designed for treating lower back pain into Scripps facilities in San Diego. Furthermore, precious metals showed positive movement during this period, with gold increasing by 1.6% to $2,892.7 per troy ounce and silver rising 2.2% to $32.20 per troy ounce, reflecting investor tendencies towards safe-haven assets amid market volatility. As these market dynamics unfold, investors should remain vigilant to reflect on both macroeconomic trends and sector-specific developments that could influence portfolio strategies moving forward..