Market Insider

Tech stocks fall, offsetting sharp gains in financials

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The pain is not over yet for technology stocks.

The S&P 500's information technology sector fell 1.71 percent on Monday, offsetting a rise of 2.29 percent in financials.

The tech sector, one of the best-performing sectors of 2016, has taken a beating since Republican Donald Trump shocked the world to win the presidential election, falling more than 2 percent since then.

S&P tech sector since 11/8

Source: FactSet

Several big-name tech stocks, including Apple and the so-called FANG stocks (Facebook, Amazon, Netflix and Google's parent firm Alphabet) have taken a hit since the election.

"Silicon Valley was not that supportive of Donald Trump, so I think there are some policy fears there," said Brian White, an analyst at Drexel Hamilton. "Silicon Valley was mostly supportive of [Hillary] Clinton. ... So there was more of a shock there than in other industries."

On Sunday, The Global Times, a state-owned newspaper in China, warned the Chinese government could take retaliatory measures against U.S. companies if Trump slapped a large import tariff on Chinese products.

Aside from the tech decline, the broader U.S. stock market has surged since Nov. 8, with the Dow Jones industrial average and rising 3.45 percent and 1.73 percent, respectively.

White said he's not fundamentally concerned regarding the tech sector, saying "I highly doubt we're going to go into a trade war with China, which would not help anyone."