Most US equity indexes closed lower on Monday, as investors continue to worry about macro environment amid growing expectations that interest rates will remain elevated as inflation proves tougher to conquer than many had hoped.

The technology-heavy Nasdaq Composite dropped 1.2% to 19,286.9 and the S&P 500 fell 0.5% to close at 5,983.3, while the Dow held on a 0.1% gain at 43,461.2. Among sectors, consumer discretionary, technology and communication services dragged, while Real Estate, financials and health care were the top gainers.

In economic news, the Dallas Federal Reserve's monthly manufacturing index fell to a minus 8.3 reading for February from 14.1 in January, suggesting a contraction and missing forecasts of experts polled by Bloomberg of 6.4. Recent surveys by the Philadelphia and New York Federal Reserve banks had indicated manufacturing activity in those regions still was expanding.

"A pullback was seen in Texas factory activity in February, with manufacturing executives noting mounting uncertainty, primarily regarding tariff policy," said Emily Kerr, senior business economist at the Dallas Fed.

US Treasury yields also were down, with the 10-year slipping 2 basis points to 4.4% while the two-year yield down 2.2 basis points to 4.17%.

In company news, Apple (AAPL) climbed 0.6% after saying it will invest more than $500 billion over the next four years in the US, including construction a new 250,000-square-foot facility in Houston producing servers supporting artificial intelligence initiatives.

JPMorgan Chase (JPM) retreated 1.1% after saying it's committing $50 billion from its balance sheet, along with nearly $15 billion toward its private-credit deals..

Target Hospitality (TH) also slumped over 46% on heavy volume after saying it was withdrawing its preliminary outlook for 2025 after the US government disclosed plans to discontinue its services agreement with a Target nonprofit partner for the Pecos Children's Center.

West Texas Intermediate crude oil futures rose 0.7% to settle at $70.87 per barrel, rebounding moderately on Monday following a slide on Friday.

Gold for April delivery climbed 0.5% to settle at $2,967 per troy ounce, while silver was down 0.9% to $32.71.