US equity indexes fell as a steeper-than-expected decline in consumer confidence pushed government bond yields sharply lower.

The Nasdaq Composite dropped 1.4% to 19,016.9, with the S&P 500 down 0.7% to 5,940.8 and the Dow Jones Industrial Average traded 0.1% lower at 43,421.6. Energy, consumer discretionary, and communication services led the decliners while the consumer staples sector was the biggest gainer intraday.

The Conference Board's measure of consumer confidence fell to 98.3 in February from 105.3 in January, a larger drop than the 102.5 expected in a survey compiled by Bloomberg.

"Consumers became pessimistic about future business conditions and less optimistic about future income," Stephanie Guichard, a senior economist at the Board, said in a note. "Pessimism about future employment prospects worsened and reached a ten-month high."

US Treasury yields fell, with the 10-year sinking 9.1 basis points to 4.30% and the two-year rate diving 7.4 basis points to 4.09%.

US equity investors are awaiting Nvidia's quarterly earnings post-bell Wednesday as they look for continued validation of the so-called AI trade.

In company news, Sempra (SRE) reported Q4 adjusted earnings and revenue below the average analyst estimates compiled by FactSet while lowering its full-year 2025 earnings guidance. Shares plunged 20% intraday, the worst performer on the S&P 500.

West Texas Intermediate crude oil futures sank 2.7% to $68.82 a barrel.