01:38 PM EST, 02/25/2025 (MT Newswires) -- US equity indexes traded mixed while government bond yields fell as a steeper-than-expected drop in consumer confidence added to concerns surrounding consumer weakness.

The Nasdaq Composite dropped 1.2% to 19,053.2, with the S&P 500 down 0.5% to 5,954.7 after midday Tuesday. The Dow Jones Industrial Average rose 0.2% to 43,542.7, clawing back earlier declines. Energy, consumer discretionary, and communication services led the decliners, while the consumer staples sector was the top gainer intraday.

The Conference Board's measure of consumer confidence fell to 98.3 in February from 105.3 in January, versus the 102.5 expected in a survey compiled by Bloomberg. The slump is the steepest monthly decline since August 2021, according to Stephanie Guichard, a senior economist at the Board.

"Consumers became pessimistic about future business conditions and less optimistic about future income," Guichard 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 8.7 basis points to 4.31% and the two-year rate diving 5.8 basis points to 4.1%. "Traders continue to be rattled this morning by worries surrounding US growth - but we'd argue that this can easily translate to worries about global growth," Thierry Wizman, global foreign exchange and rates strategist at Macquarie, said in a note.

Further, in economic news, the Dallas Federal Reserve's monthly general business services index fell to 4.6 in February from 7.4 in January, indicating slower expansion. Redbook same-store sales rose by 6.2% from a year earlier in the week ended Feb. 22, slower than a 6.3% year-over-year increase in the previous week.

President Donald Trump is on track to impose a 10% tariff on energy imports from Canada and a 25% levy on goods from Canada and Mexico after a month-long deadline expires early next month.

"Tariffs remain top of mind, sparking a rise in consumer inflation expectations and complicating international relationships," Stifel Chief Economist Lindsey Piegza said in a note.

Meanwhile, investors are awaiting Nvidia's (NVDA) quarterly earnings post-bell Wednesday as they look for continued validation of the so-called AI trade that has significantly underpinned the S&P 500 and the Nasdaq for several quarters.

In company news Tuesday, 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 nearly 19% intraday, the worst performer on the S&P 500.

Thermo Fisher Scientific (TMO) agreed to acquire Solventum's (SOLV) purification and filtration business for $4.1 billion in cash. Shares of Solventum rose 10% intraday, the top performer on the S&P 500.

Home Depot (HD) shares advanced 4% intraday, the biggest gainer on the Dow, after the company reported higher fiscal Q4 adjusted earnings and revenue.

West Texas Intermediate crude oil futures sank 2.6% to $68.87 a barrel.

Gold futures slumped 1.4% to $2,921.11, and their silver counterparts dropped 2.3% to $31.86.