US stocks retreated on Monday as shares of AI darling Nvidia (NVDA) tanked and a looming deadline fueled uncertainty around President Donald Trump’s tariff plans ahead of this Friday’s monthly jobs report.
The S&P 500 (^GSPC) fell 0.7% while the tech-heavy Nasdaq Composite (^IXIC) erased early morning gains to fall more than 1.3%. The Dow Jones Industrial Average (^DJI) fell 0.6%, as the major US indexes came off a volatile week and a losing February.
Nvidia stock plummeted as much as 7% on Monday as reports surfaced that the tech giant’s AI chips are reaching China despite export controls.
Elsewhere, European leaders’ weekend effort to rally around Ukraine prompted traders to boost bets on a bump in defense spending in the region, lifting related stocks.
The week will bring a crucial jobs report and a batch of retail earnings that could feed or ease concerns about an economic downturn and consumer resilience. The February nonfarm-payrolls report on Friday is expected to show modest job growth, with the unemployment rate steady at 4%.
And in retail earnings ahead, results from Target (TGT) on Tuesday and Costco (COST) are in focus for what they reveal about American shoppers. Data last week showed consumer spending unexpectedly fell in January by the most in four years.
Meanwhile, cryptocurrencies got a boost after Trump said on Sunday that five digital assets — bitcoin (BTC-USD), ether (ETH-USD), XRP (XRP-USD), solana (SOL-USD), and cardano (ADA-USD) — would be included in a new US strategic cryptocurrency reserve. Prices of those tokens on Monday held onto much of the sharp gains booked following the post on social media by the president, with bitcoin trading around $91,700.
LIVE17 updates
2 mins ago
Dow, S&P 500, Nasdaq sink to session lows as Nvidia falls 7%
The major averages sank to session lows as selling intensified in afternoon trading on Monday and shares of Nvidia (NVDA) sank 7%.
Nvidia stock sank after as reports surfaced of the tech giant’s AI chips reaching China despite export controls.
The S&P 500 (^GSPC) fell 0.7% while the tech-heavy Nasdaq Composite (^IXIC) dropped more than 1.2%. The Dow Jones Industrial Average (^DJI) fell 0.6%.
42 mins ago
Ray Dalio: Debt crisis could cause ‘economic heart attack’ for US economy in the next 3 years
On Monday, two separate releases showed activity in the manufacturing sector slowed in February while construction spending fell more than anticipated in January. The Atlanta Fed’s GDPNow tool, which uses already released data in the quarter to project the pace of US economic growth, now projects GDP fell by 2.8% in the first quarter, down from Friday’s projection of a 1.5% decline.
Economists at Oxford Economics also slashed their GDP estimate following this morning’s releases.
“The January figures of private construction have lowered our estimate of Q1 GDP to 0.6% annualized, down from 1% at the end of last week and well below the 2.5% penciled into the February baseline forecast,” Oxford Economics lead US economist Bernard Yaros wrote in a note on Monday.
Today at 4:20 PM UTC
Tesla stock pops as Morgan Stanley predicts shares will rally to $430 on AI and robotics play
Tesla stock (TSLA) rose 2% on Monday as Morgan Stanley analyst Adam Jonas said he sees shares of the EV giant rising to $430 as it diversifies into artificial intelligence and robotics.
Shares of the EV maker plummeted almost 28% in February as the company’s EV sales slumped, leaving investors to wonder whether CEO Elon Musk’s involvement in politics was turning off buyers.
Jonas predicted Tesla’s full-year 2025 deliveries could decline year over year, “creating an attractive entry point” for investors. The analyst reinstated Tesla as a top pick for the auto sector, with a price target of $430 (a roughly 50% increase from Friday’s close of $292.98) and a bull case of $800.
“Tesla’s softer auto deliveries are emblematic of a company in the transition from an automotive ‘pure play’ to a highly diversified play on AI and robotics,” he added.
Crypto stocks rally after Trump touts US crypto reserve
Crypto stocks rallied in early trading on Monday after President Donald Trump made new promises about a US crypto reserve planned by his administration.
Shares of Strategy (MSTR) — the largest corporate holder of bitcoin formerly known as MicroStrategy — rose as much as 12% on Monday morning, but was last trading about 3% higher. Meanwhile, crypto miners Riot Platforms (RIOT) and MARA Holdings (MARA), the latter formerly known as Marathon Digital, both added around 3%. Trading platform provider Coinbase (COIN) climbed 1.5%.
US manufacturing hit by ‘operational shock’ of Trump tariffs pushing costs up
Data out Monday showed activity in the manufacturing grew less than expected in February while costs increased.
The Institute for Supply Management’s manufacturing PMI registered a reading of 50.3 in February, down from January’s 50.9 reading and below the 50.7 economists had expected. Readings above 50 for this index indicate an expansion in activity, while readings below 50 indicate a contraction.
The prices paid index surged to 62.4, up from 54.9 the month prior, reflecting companies’ continuing increase in costs.
“Demand eased, production stabilized, and destaffing continued as panelists’ companies experience the first operational shock of the new administration’s tariff policy,” Institute for Supply Management Chair Timothy Fiore wrote in the release. “Prices growth accelerated due to tariffs, causing new order placement backlogs, supplier delivery stoppages and manufacturing inventory impacts. Although tariffs do not go into force until mid-March, spot commodity prices have already risen about 20 percent.”
Another reading on manufacturing activity out Monday also raised concern about President Trump’s policies. The final reading of S&P Global’s manufacturing PMI hit 52.7 in February, above 51.2 in January and its highest level since June 2022.
Despite the upbeat index reading for February, S&P Global Market Intelligence chief business economist Chris Williamson noted that respondents’ optimism for the year ahead is waning.
“Business optimism about the year ahead has consequently fallen compared to the buoyant mood evident in January, with February seeing an increase in the number of companies citing concerns over tariffs and other policies introduced by the new Trump administration,” Williamson said in the release.
Today at 2:36 PM UTC
Stocks open higher as Trump tariffs loom
Stocks opened higher on Monday as investors braced for President Trump’s targeted tariffs to come into force soon. The market will get key economic insight from Friday’s release of the monthly jobs report and from quarterly results from key retailers.
The S&P 500 (^GSPC) climbed 0.5%. while the tech-heavy Nasdaq Composite (^IXIC) rose about 0.8%. The Dow Jones Industrial Average (^DJI) was up 0.3%.
Investors expect tariffs on Mexico and Canada will be implemented on Tuesday, along with a doubling of levies on imports from China.
Wall Street will be closely watching the February jobs report due Friday. On the earnings front, results from Target (TGT), Costco (COST), and Kroger (KR) will offer more details about the state of the consumer.
Today at 2:09 PM UTC
Goldman Sachs warns any S&P 500 rebound is likely temporary amid economic concerns
Markets are coming off a volatile week and month in February. And as March trading kicks off, Goldman Sachs strategists warn any rebound in the S&P 500 (^GSPC) is likely to prove temporary as the US economy shows signs of a slowdown.
“In the near term, we believe an improvement in the US economic growth outlook will be required to fully reverse the recent equity market weakness,” Goldman’s David Kostin wrote in a note. “We expect growth data will again be key for the path of US equities and next Friday’s jobs report will represent a major test.”
Goldman revised its 2025 earnings per share growth forecast from 11% to 9% and maintained its 2026 growth forecast of 7%.
Kroger ousts CEO after violation of ‘ethics’ policy
Kroger (KR) shares were down 1% premarket on news that the grocer’s longtime CEO, Rodney McMullen, resigned from his post following an investigation into his personal conduct.
Intel stock pops after report Nvidia has started manufacturing tests
Intel’s (INTC) shares were up 5% in premarket after Reuters reported that AI leader Nvidia (NVDA) and Broadcom (AVGO) running manufacturing tests of their chips in its factory.
Reuters reported, citing sources familiar with the matter:
Defense stocks rallied in Europe on Monday after leaders in the region discussed how to secure Ukraine, prompting investors to ramp up bets on a rise in military spending.
The UK and France are leading a push by a “coalition of the willing” European leaders to boost peacekeeping forces after last week’s clash between US President Donald Trump and Ukraine’s leader Volodymyr Zelenskiy.
The moves follow reports that France’s president and Germany’s next government believe that hundreds of billions of dollars in additional defense spending is needed.
Shares of European arms makers jumped, with BAE Systems (BA.L, BAESF) rising 13% and Rheinmetall (RHM.DE, RNMBY) up 16%. Thales (HO.PA, THLEF) added 11%, Saab (SAABY, SAAB-B.ST) put on 9%, and Dassault Aviation (AM.PA) gained 12%, helping lift the Stoxx 600 by 0.5% toward a record high.
Today at 6:58 AM UTC
Oil prices maintain against Ukraine news and upcoming tariffs
Oil prices remained level at the beginning of the week as traders assessed the potential impact of Russia’s war in Ukraine and awaited President Donald Trump’s tariffs on US trading partners ahead of the March 4 implementation date.
Cryptocurrencies surge on inclusion in strategic reserve
On Sunday, US President Donald Trump revealed the names of five digital assets he plans to add to a new strategic reserve of cryptocurrencies, causing surges in the market value of each.
Trump shared the announcement on Truth Social, stating that his January executive order on digital assets would establish a stockpile consisting of Bitcoin, Ethereum, XRP, Solana, and Cardano. These assets had not been disclosed before.
Third-generation blockchain stalwart Cardano saw the biggest gain, skyrocketing 60% in minutes.
Today at 1:56 AM UTC
Gold climbs up following first loss in weeks
Gold (GC=F) opened up after the weekend following a steep fall last week. Investors are bracing for potential economic instability as US President Donald Trump prepares to implement import tariffs against key trade partners.
