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(Bloomberg) -- U.S. stocks gave up early gains as a selloff in technology shares from Apple Inc. to Amazon.com Inc. dragged down major indexes. Treasuries dropped after Federal Reserve Chair Janet Yellen called economic growth “increasingly broad based.”

The Nasdaq 100 Index fell as much as 2.2 percent as signs of a rotation from the year’s leaders emerged anew. As tax legislation proceeded through the Senate, the FANG block of megacap tech shares that paced gains throughout the year fell the most in 22 months. All 15 members of the S&P 500 Semiconductor Index retreated, led by Micron Technology, Lam Research Corp. and Applied Materials Inc.

“The large tech companies already have low effective tax rates because they were gaming the system,” Michael O’Rourke, chief market strategist at JonesTrading Institutional Services LLC, said by phone. “Any reform would have to close the loopholes, which obviously they’re trying to do, so they don’t benefit.”

Stocks started the day higher on speculation the Senate would pass cuts to corporate taxes, with banks pacing gains on bets that industry will benefit most. Yellen’s comments added to optimism that growth is poised to accelerate. The dollar fluctuated, while 10-year Treasury yields rose.

In testimony prepared for her appearance Wednesday before the congressional Joint Economic Committee, Yellen repeated that she anticipates the Fed will continue gradually raising interest rates and trimming its balance sheet. The Fed’s Beige Book economic report said the U.S. economy grew at a modest to moderate pace through mid-November as price pressures strengthened and the labor market tightened.

The Stoxx Europe 600 Index advanced with banks outperforming after Yellen’s proposed replacement, Jerome Powell, signaled that he won’t add to financial regulations. Retailers got a leg up after the strongest euro-zone confidence data since 2000 underscored the region’s economic resilience. Core European bonds fell and the euro gained as data showed German inflation accelerated in November. 

In the U.K., gilts dropped and sterling jumped as investors brought forward their expectations for the next interest-rate increase by the Bank of England after Brexit negotiators agreed to an outline divorce deal. The FTSE 100 stock index fell the most in five weeks.

Elsewhere, oil declined before OPEC meets to decide on prolonging supply cuts past the end of March. Industrial metals extended a slide.

Terminal subscribers can read our Markets Live blog.

Here are some key events coming up this week:

  • In China later this week, the official and Caixin manufacturing PMIs are expected to show mostly steady momentum.
  • Japan industrial production is forecast to have rebounded in October, but CPI may show a sharp divergence between headline and core inflation, Bloomberg Intelligence said.
  • OPEC meets in Vienna on Thursday.

These are the main moves in markets:

Stocks

  • The S&P 500 fell less than 0.05 percent as of 4:02 p.m. New York time, the biggest decline in a week.
  • The Stoxx Europe 600 Index climbed 0.2 percent. 
  • The U.K.’s FTSE 100 Index sank 0.9 percent. 
  • Germany’s DAX Index gained less than 0.05 percent.
  • The Nasdaq Composite Index sank 1.3 percent, the biggest decline in almost 15 weeks.

Currencies

  • The Bloomberg Dollar Spot Index gained less than 0.05 percent. 
  • The euro rose 0.1 percent to $1.1854. 
  • The British pound advanced 0.5 percent to $1.3412, the strongest in two months. 
  • The Japanese yen sank 0.3 percent to 111.86 per dollar.

Bonds

  • The yield on 10-year Treasuries climbed five basis points to 2.38 percent. 
  • Germany’s 10-year yield gained five basis points to 0.39 percent, the highest in two weeks. 
  • Britain’s 10-year yield climbed nine basis points to 1.338 percent.

Commodities

  • West Texas Intermediate crude fell 1.1 percent to $57.38 a barrel. 
  • Gold dipped 0.7 percent to $1,285.24 an ounce, the weakest in more than a week. 
  • Copper fell 0.7 percent to $6,760 a ton.

--With assistance from Adam Haigh

To contact the reporters on this story: Robert Brand in Cape Town at rbrand9@bloomberg.net, Sarah Ponczek in New York at sponczek2@bloomberg.net.

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Andrew Dunn, Randall Jensen

©2017 Bloomberg L.P.

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