The largest exchange-traded fund to track the technology sector fell on Monday, diverging from the broad market’s strong upward bias as semiconductor and large-capitalization internet stocks tumbled on the day. The fund fell 1.3%, compared with the 0.4% rise of the S&P 500 . Chipmakers were among the biggest drags within the sector, with the PHLX Semiconductor index down 2.9%. Every component of the semiconductor index fell on Monday amid valuation concerns and fear that supply of memory chips was catching up with demand. Advanced Micro Devices fell 7.1% while Micron Technology shed 5.8%. Nvidia Corp lost 5.7% on the day. The group has been one of the strongest sectors of the market this year, with the index up about 35% in 2017. Separately, some of tech’s biggest 2017 gainers were also lower on the day. Facebook fell 1.9% while Microsoft Corp. was down 2.1%.
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