Technology stocks and sector-related ETFs declined Monday as Europe looks to U.S. tech companies amid escalating trade tensions.
On Monday, the Technology Select Sector SPDR Fund (NYSEArca: XLK), the largest tech-related ETF, dropped 2.4% while the PowerShares QQQ (NasdaqGM: QQQ), which tracks the tech-heavy Nasdaq-100 Index, declined 2.6%.
Triggering a round of selling in the technology sector on Monday, France petitioned to fine Apple (NasdaqGS: AAPL) and Alphabet (NasdaqGS: GOOGL) for allegedly taking advantage of smaller French software developers and the European Union plans to unveil two legislative proposals to hike taxes on tech giants, the Wall Street Journal reports.
The E.U. will unveil its plan next week and is expected to primarily put U.S. tech companies in its crosshairs.