Wall Street’s main stock indexes declined on Monday, reversing premarket gains after data showed that new orders at U.S. factories fell in February, suggesting concerns that President Donald Trump’s tariffs could pressure production.
An ISM survey showed manufacturing was steady in February, but a measure tracking forward-looking new orders contracted to 48.6 last month from 55.1 in January.
At 10:18 a.m. ET the Dow Jones Industrial Average fell 31.77 points, or 0.07%, to 43,809.67, the S&P 500 lost 22.52 points, or 0.38%, to 5,931.98 and the Nasdaq Composite lost 145.65 points, or 0.78%, to 18,700.59.
Technology led declines among the S&P 500’s 11 sectors with a 1.5% drop, dragged down by a 5% fall in chip giant Nvidia.
Cyclical stocks such as industrials and energy dipped 0.1% and 0.5%, respectively, after the data.
Recent reports of softening consumer demand have spurred fears of a slowdown as markets prepare for higher inflation once Donald Trump administration’s tariff policies take full effect.
Wall Street Week Ahead: Rising investor angst about economy to be tested by US jobs data
Wall Street’s main indexes logged their first monthly decline of 2025 in February, during which the Nasdaq also came close to a 10% drop from its all-time high due to fears of a rise in inflation induced by Trump’s tariffs and other factors.
Trump’s Tuesday deadline will end the one-month pause on 25% tariffs he imposed on imports from Canada and Mexico.
However, Commerce Secretary Howard Lutnick’s comments on Sunday sparked expectations that the levels of the duties might be lower than the threatened tariffs.
“Most of Wall Street still believes that the tariffs are rhetoric rather than reality,” said Sam Stovall, chief investment strategist at CFRA Research.“
“The purpose of the tariff by the administration is to make changes with the trading partners, not to end trade with (them).”
The Federal Reserve has left interest rates on hold since December in anticipation of sticky inflation, but this week’s economic data, could change the institution’s outlook.
Investors will also focus on other crucial data on services activity and employment, lined up through the week.
Traders have dialed up bets on the Fed’s 2025 monetary policy easing cycle to at least two 25 basis points worth of interest rate cuts by December, according to data compiled by LSEG.
Trump has also threatened that an extra 10% duty on imports from China will also take effect on Tuesday, against which a report said Beijing is likely to retaliate with counter-measures on agricultural imports from the U.S.
U.S-listed shares of Chinese companies fell following the report on Beijing’s expected moves, with Nio and JD.com off about 4.7% and 2.6%, respectively.
Tesla rose 0.7% after Morgan Stanley reinstated the stock as ‘top pick’ among U.S. autos.
Crypto stocks such as MicroStrategy jumped 4%, Coinbase rose 2.5% after Trump announced a proposed reserve of digital assets.
Chipmaker Intel rose 2% after a report that chip designers Nvidia and Broadcom were running manufacturing tests with the company.
Advancing issues outnumbered decliners by a 1.49-to-1 ratio on the NYSE, and declining issues outnumbered advancers by a 1.24-to-1 ratio on the Nasdaq.
The S&P 500 posted 54 new 52-week highs and five new lows, while the Nasdaq Composite recorded 39 new highs and 143 new lows.
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