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Intel ( INTC ) up after report of Nvidia ( NVDA ), Broadcom ( AVGO ) collaboration

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ISM manufacturing PMI at 50.3 in February

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Indexes down: Dow 0.74%, S&P 500 0.77%, Nasdaq 1.13%

(Updates to 2:26 PM ET)

By Johann M Cherian, Sukriti Gupta and Chibuike Oguh

NEW YORK, March 3 (Reuters) - Wall Street's main stock

indexes slipped on Monday after data showed a slight dip in U.S.

manufacturing and as investors waited for President Donald

Trump's decision on tariffs.

An ISM survey showed manufacturing PMI slipped to 50.3 last

month from 50.9 in January, while the forward-looking new orders

index contracted to 48.6 in February from 55.1 in January.

The dip in the PMI mirrored declines in other sentiment

measures as Trump ratchets up tariffs on imported goods. The

president is expected to decide early on Tuesday on tariff

levels for imports from Canada and Mexico, following last-minute

negotiations over border security and efforts to halt the inflow

of fentanyl opioids.

"I think it's just more of a continuation of a string of bad

economic news that tends to put a little bit of a dampener on

the optimism that we saw from the fourth quarter earnings that

were getting released, which were pretty good," said James St.

Aubin, chief investment officer at Ocean Park Asset Management

in Santa Monica, California.

"You've got a lot of policy uncertainty from Trump.

Certainly layoffs are part of that but also the trade policy. I

think that's all working against the positive sentiment forcing

that sort of glass-half-full mentality into a back seat position

and bringing out some of the bearish glass-half-empty mindset

that comes and goes."

The Dow Jones Industrial Average fell 324.99 points,

or 0.74%, to 43,515.92, the S&P 500 lost 45.58 points, or

0.77%, to 5,908.92 and the Nasdaq Composite lost 214.33

points, or 1.13%, to 18,633.40.

Energy and technology sectors led declines

among the S&P 500's 11 sectors, with most megacap growth sectors

trading down including chip giant Nvidia ( NVDA ) - which is

down 6.5%.

Defensive sectors such as Real estate, healthcare

and consumer staples were trading higher.

Recent reports of softening consumer demand have spurred

fears of an economic slowdown and higher inflation. Trump has

threatened that an extra 10% duty on imports from China will

also take effect on Tuesday, which could spark retaliation from

Beijing.

U.S-listed shares of Chinese companies fell, with Nio

and JD.com ( JD ) off about 6% and 1%, respectively.

Worries about sticky inflation have made the Federal Reserve

more cautious on interest rate cuts, but this week's employment

and business activity data could change the central bank's view.

Traders have been betting on at least two 25 basis points

worth of interest rate cuts from the Fed by December, according

to data compiled by LSEG.

Tesla erased early gains and was down 2%. Morgan

Stanley ( MS ) had reinstated the stock as 'top pick' among U.S. autos.

Chipmaker Intel rose 0.6% after a report that chip

designers Nvidia ( NVDA ) and Broadcom ( AVGO ) were running

manufacturing tests with the company.

Declining issues outnumbered advancers by a 1.05-to-1 ratio

on the NYSE. There were 178 new highs and 181 new lows on the

NYSE.

The S&P 500 posted 57 new 52-week highs and 11 new lows

while the Nasdaq Composite recorded 56 new highs and 296 new

lows.