Super Micro Computer, Inc. (SMCI) stock was trading lower by nearly 3% on Monday as investors pulled back from growth-oriented technology stocks. The Nasdaq fell 0.87%, while the S&P 500 declined 0.54%.

Broader Market Pressure

Monday's decline came as broader market sentiment weakened amid higher oil prices and rising Treasury yields.

U.S. stocks slipped after President Donald Trump rejected Iran's proposal to reopen the Strait of Hormuz and end the months-long standoff. WTI crude jumped 4.2% to $96.31 a barrel, while Brent rose 4% to $108.50.

The 10-year Treasury yield climbed 10 basis points to 5.27%, its highest level since 2007. Traders were also pricing in roughly a 65% chance of a Federal Reserve rate hike in October as higher energy prices fueled inflation concerns.

That backdrop weighed on growth stocks, which can be more sensitive to higher interest rates.

Market breadth remained negative, with an advance-decline ratio of about 0.4. Eight of the 11 major sectors were trading lower.

The pullback follows a strong multiweek rebound in Super Micro shares, which may also be prompting some investors to take profits.

Super Micro Technical Analysis

Despite Monday's decline, SMCI remains above its 20-day, 50-day, 100-day and 200-day simple moving averages.

The 20-day SMA is also above the 50-day SMA. Meanwhile, a golden cross formed in August when the 50-day SMA moved above the 200-day SMA.

Momentum indicators remain constructive. MACD is above its signal line, while the histogram remains positive.

The $35.50 area is a key support level. It sits near the stock's 50-day SMA of about $35.39.

Analyst Outlook

The stock carries a Hold consensus rating and an average price forecast of $39.50.

Citigroup maintained a Neutral rating and raised its price forecast to $39 on Aug. 12. Goldman Sachs maintained a Sell rating and raised its forecast to $34. Mizuho maintained a Neutral rating and raised its forecast to $35.

Super Micro Edge Rankings

Super Micro scores highly across several market data categories.

Its Momentum score stands at 93.05, while Quality is 94.96. Value comes in at 86.07 and Growth at 99.21.

The scores point to strong growth and momentum characteristics, although Monday's broader risk-off trading environment is weighing on the shares.

ETF Exposure

Super Micro is among the holdings of the iShares Future AI & Tech ETF (ARTY), iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT) and ERShares Entrepreneurs ETF (ENTR).

Changes in fund flows can create additional buying or selling activity in stocks held by these ETFs.

Super Micro Price Action

Super Micro Computer shares were down 2.74% at $42.08 at the time of publication Monday, according to market data.