Tech troubles bring stocks lower

Stocks declined globally on Monday as a technology selloff sent the Nasdaq indexes to the steepest losses in six weeks. Government bonds pared losses, while the pound jumped on a Brexit breakthrough.

U.S. stocks slumped as tech companies were roiled by reports of a Facebook data breach and Apple efforts to develop its own screens. That sapped Asian equities, while tech also led a retreat for the Stoxx Europe 600 Index. Facebook fell the most in almost four years. The tech rout added to pressure that had mounted over the weekend in Washington, as speculation grew that President Donald Trump could be preparing to fire Robert Mueller.

“If the Facebook news didn’t exist there would be all sorts of jitters here just given the Trump stuff,” said Michael Purves, Weeden & Co.’s chief global strategist. “If the regulatory clouds come on Facebook, certainly Google and Amazon will face increasing questions about their ability to generate outsized earnings growth if the regulators are going to be beating them.”

Meanwhile, large digital companies operating in the European Union, such as Alphabet or Twitter, could face a 3 percent tax on their gross revenues based on where their users are located, according to a draft proposal by the European Commission.

In a busy week, the biggest focus for global markets will be the first U.S. interest rate decision under new Federal Reserve Chairman Jerome Powell.

“Today’s a combination of a little bit of nervousness ahead of Fed activity later in the week and then also tech getting hit,” said Craig Birk, an executive vice president of portfolio management at Personal Capital in San Francisco.