S&P 500, Nasdaq slip as NVIDIA underperforms; Tesla shares and crypto stocks jump

The S&P 500 declined on Monday, continuing February's losses as the approaching deadline for President Donald Trump's tariff policies intensified economic concerns.

At the time of writing, the Dow Jones Industrial Average was flat from the previous close, while the S&P 500 was slightly in the red.

The Nasdaq Composite index fell 0.4%. 

The Dow and S&P 500 each fell over 1% in February, while the Nasdaq Composite, down 4%, saw its worst month since April 2024, marking the steepest losses among the three major indexes.

“Investors were concerned by a recent run of disappointing data releases which suggest that the US economy may be faltering a touch. Last year’s pick-up in inflation remains a concern, although the market reacted positively to Friday’s relatively benign Core PCE update,” said David Morrison, senior market analyst at Trade Nation. 

“But the jump in weekly Unemployment Claims, along with a slump in consumer confidence managed to rattle investors,” he added. 

Economic data released on Monday for the manufacturing and construction sectors added to growing concerns about the US economy. 

This week will see further significant economic releases, including Friday's February jobs report.

Cryptocurrency stocks, including Coinbase, Robinhood, and MicroStrategy, rose after Trump announced the creation of a US strategic crypto reserve that will include bitcoin and ether. 

Bitcoin briefly jumped 10% to nearly $94,000 after dipping to a three-month low under $80,000 on Friday.

NVIDIA pulls down Nasdaq

NVIDIA's stock experienced a significant drop of nearly 6% on Monday, making it the day's poorest performer within both the Nasdaq 100 and the broader S&P 500 indexes. 

This decline had a ripple effect on the overall market, causing the technology-heavy Nasdaq Composite to lag behind the other two major indexes during morning trading. 

The slide in NVIDIA's shares highlights the company's influence on the tech sector and the broader market, demonstrating how fluctuations in a single major tech stock can impact investor sentiment and overall market performance.

Tesla, a megacap tech stock that has been beaten down this year, rose 3% after Morgan Stanley told clients to expect a rebound ahead.

Palantir, another retail investor favorite that has struggled recently, climbed more than 3%. 

Nvidia's drop mitigated gains seen within other notable tech names.

Tesla jumps

Tesla's stock experienced a significant surge, jumping nearly 3%, following a bullish call from Morgan Stanley analyst Adam Jonas. 

Jonas named the embattled electric vehicle manufacturer as a new top pick in the US auto sector, expressing optimism about the company's future and predicting a potential rebound of approximately 50% in its stock price. 

This positive outlook from a prominent Wall Street analyst instilled renewed confidence among investors, leading to increased buying activity and driving up Tesla's share price.

Allegro MicroSystems rallies

Allegro MicroSystems' shares experienced a significant surge following a Bloomberg report, which cited insider sources, indicating that the chipmaker has attracted takeover interest from ON Semiconductor. 

The report further suggested that other potential suitors, keen on expanding their automotive capabilities, might also emerge and express interest in acquiring Allegro MicroSystems. 

In response to the news, ON Semiconductor's shares also saw a moderate gain of approximately 1%.

At the time of writing, the chipmaker’s stock was up more than 21% from the previous close.