01:34 PM EDT, 04/28/2025 (MT Newswires) -- US equity indexes fell in choppy midday trading Monday as investors lightened on technology exposure ahead of quarterly earnings from index heavyweights and data shedding light on monetary policy direction.

The Nasdaq Composite dropped 1.4% to 17,138.6, with the S&P 500 down 1% to 5,469.7 and the Dow Jones Industrial Average 0.6% lower at 39,876.9. Earlier in the session, the Dow and the S&P 500 traded in positive territory. All sectors except technology, consumer discretionary, and communication services rose intraday, with materials leading the gainers.

Shares of all Magnificent-7 companies fell after midday, with Nvidia ( NVDA ) and Tesla (TSLA) leading the category's declines.

The Wall Street Journal reported, citing people familiar with the matter, that China's Huawei Technologies is preparing to test its latest artificial intelligence processor that could replace higher-end Nvidia ( NVDA ) products. Nvidia ( NVDA ) slumped 4.3% intraday, the worst performer on the S&P 500, the Nasdaq, and the Dow.

UBS adjusted its price target for Micron Technology's ( MU ) shares to $92 from $130 while maintaining its buy rating. The semiconductor company's shares dropped 3% intraday, among the steepest decliners on the S&P 500 and the Nasdaq.

The onslaught of technology earnings, starting with index heavyweights Microsoft ( MSFT ) and Meta Platforms ( META ) reporting on Wednesday, will likely set the equity market direction this week. Amazon.com (AMZN) and Apple ( AAPL ) will report quarterly results on Thursday.

Trade tariff headlines, non-farm payrolls, and the personal consumption and expenditures index could significantly influence markets as investors try to decipher how the Federal Reserve will manage its dual mandate amid the detrimental impact of an increase in punitive import duties.

Gold futures jumped 1.4% to $3,344.72 per ounce.

The ICE US Dollar Index declined 0.4% to 99.08.

The dollar's recent weakness has been a reaction to US growth and political concerns, according to the Wells Fargo Investment Institute. "Policy should continue to be volatile, but we see the US avoiding recession." Specifically, the WFII said the weakness is not a part of a structural change and "a rebound is possible if policy and economic growth concerns are resolved."

In economic news, the Dallas Fed's monthly manufacturing index fell to minus 35.8 in April from minus 16.3 in March, compared with expectations for an increase to minus 14.1 in a survey of analysts compiled by Bloomberg.

Most US Treasury yields fell, with the 10-year down 4.6 basis points to 4.22% and the two-year rate slumping 6.9 basis points to 3.69%.

Meanwhile, the West Texas Intermediate crude oil futures dropped 2.3% to $61.57 a barrel.

"Cargo shipments from China to the US have plummeted by as much as 60% since the US raised tariffs to 145% in early April, and this reduction will soon be felt by American consumers," Saxo Bank said in a note. "By mid-May, thousands of companies will need to replenish inventories, which could lead to empty shelves, higher prices, and 'Covid-like' shortages, as well as significant layoffs in industries such as trucking, logistics, and retail."