By Avantika Chilkoti 

The S&P 500 edged lower Monday, resuming last week's slump as shares of technology companies struggled.

The S&P 500 fell 0.2% soon after the opening bell, while the Dow Jones Industrial Average added 32 points, or 0.1%, to 25376. The tech-heavy Nasdaq Composite fell further, shedding 0.5% in early trading.

Tech stocks -- from chip manufacturers to software makers -- broadly fell, as investors continued their flight from some of the stock market's fastest-growing companies. Tech stocks in the S&P 500 lost 1.1%, the most of the 11 major sectors in the broad index, extending their decline so far this month to nearly 7%.

The losses were a continuation of last week's rout, where several global equity indexes recorded their worst performances since February as a steep spike in bond yields sparked a selloff in stocks. Investors grew increasingly jittery over U.S. growth and the prospect of further tightening from the Federal Reserve.

Though markets seemed to find their footing Friday, the downbeat trading continued Monday.

"I'm starting to seriously worry that markets may trigger an economic downturn earlier than widely expected, driving a self-fulfilling market adjustment toward more normal (long-term) valuations," said Erik F. Nielsen, group chief economist at UniCredit Bank, in a note to clients. "There is little chance global policy makers will come to the rescue in time."

The recent selloff is about the tech sector rather than the broader U.S. economy, according to Daniel Morris, senior investment strategist at BNP Paribas Asset Management. Amid concerns around the Federal Reserve's plans to tighten monetary policy, markets tanked last week as new U.S. inflation data came in softer than expected.

"It's really not interest rates -- it's just because tech is so far up that it was due," Mr. Morris said. "There is no real fundamental reason in terms of the economy."

In Europe, the region's broad index--the Stoxx Europe 600--was flat after negotiations around the U.K.'s impending departure from the European Union suffered a fresh setback Sunday, with the two sides failing to find a compromise on the issue of the Irish border.

"A no-deal Brexit is likely to further curb growth expectations and therefore the attractiveness of the U.K.," said Louise Dudley, Global Equities Portfolio Manager, at Hermes Investment Management. "Broadly our expectation is that we are likely to see higher costs for businesses."

--Michael Wursthorn contributed to this article.

(END) Dow Jones Newswires

October 15, 2018 10:24 ET (14:24 GMT)