S&P 500 and Nasdaq: Nvidia Drags Tech Lower While Industrials Hold—Stock Analysis

Stocks Mixed as Dow Rises; Nasdaq Drops on Tech Weakness

Stocks traded with a mixed tone on Monday as traders weighed tariff risks, sector moves, and upcoming economic data. The Dow Jones Industrial Average edged up 57 points (+0.13%) to 43,898.10, supported by strength in defensive stocks. Meanwhile, the S&P 500 slipped 16.43 points (-0.28%) to 5,938.07, and the Nasdaq Composite dropped 143.90 points (-0.76%) to 18,703.38, pressured by losses in technology stocks.

Tesla provided some support to the broader market, rising more than 3% after Morgan Stanley’s Adam Jonas suggested the stock could rebound. However, the broader technology sector struggled, with Nvidia down 4%, erasing gains from other chipmakers.

Tech Sector Under Pressure as Nasdaq Sinks

The Nasdaq’s decline was driven by renewed selling in technology stocks, particularly in semiconductors and AI-driven names. Nvidia’s 4% drop weighed on sentiment, while AMD and Broadcom also saw modest declines.

On the positive side, software stocks held firm, with Microsoft edging up 0.5% and Palantir surging over 5% as retail traders piled into speculative names.

Crypto Stocks Jump as Bitcoin Surges

Bitcoin rallied 10% to nearly $94,000 after President Donald Trump announced plans for a U.S. strategic crypto reserve. The news triggered strong gains in crypto-related stocks, with Coinbase climbing 8%, Robinhood up 6%, and MicroStrategy jumping 7%.

The move into digital assets signaled renewed risk-taking, even as markets remained cautious about regulatory uncertainties.

Industrials and Consumer Stocks React to Tariff Uncertainty

Industrials and consumer goods stocks saw measured moves as traders assessed the potential impact of upcoming U.S. tariffs. Commerce Secretary Howard Lutnick said on Sunday that the exact tariff rate on Mexico and Canada remains “fluid,” though a 10% duty on Chinese imports is set.

Caterpillar gained 0.8%, benefiting from speculation that Mexico could avoid new trade penalties by matching U.S. tariffs on China. In retail, Walmart dipped 0.4%, while Target added 0.6%, reflecting concerns that higher import costs could pressure margins.

Energy Stocks Lag as Oil Prices Decline

Energy stocks underperformed as crude oil prices edged lower. ExxonMobil and Chevron both declined around 1%, while oilfield services company Schlumberger lost 1.5%.

Traders Focus on Jobs Data and Tariff Decisions

Looking ahead, traders are watching Friday’s February jobs report for signs of labor market strength. A stronger-than-expected report could reinforce expectations for a cautious Federal Reserve, while weakness might fuel bets on rate cuts.

Meanwhile, tariff developments remain a key risk. If trade tensions escalate, inflation concerns could resurface, adding pressure to equities in the coming sessions.

More Information in our Economic Calendar.