By Yasin Ebrahim

Investing.com — The S&P 500 started the week on the backfoot as tech stocks took a breather after leading the broader market to its biggest weekly gain since November 2020 last week.

It fell 0.5%.

Tech, which is one of the most important growth sectors in the market, struggled to increase their gains over the past week. This was because, the enemy for tech stocks such as tech, continues to rise after Jerome Powell, Federal Reserve Chairman, stated that the Fed might have to raise rates faster if inflation does not abate.  

Powell said on Monday that as expectations of seeing inflation peaking in the first quarter “has already fallen apart,” a further ramp-up in inflation could force the central bank “to move more quickly.”

Meta Platforms, NASDAQ:) led sector’s decline to the downside. They were followed by Alphabet (NASDAQ :), Amazon (NASDAQ :), and Microsoft Corporation (NASDAQ :).

Apple (NASDAQ) also declined marginally as Foxconn (one of its largest suppliers), said its Shenzhen plants were almost fully functional following last week’s suspension due to an increase in Covid-19 cases.

Some losses in the overall market were offset by energy stocks, which were fueled by an increase in oil prices due to fresh supply fears and reports that Europe is contemplating a ban against Russia.

As hope fades for a diplomatic end to the conflict, Ukraine’s war in Ukraine has dragged on into its fourth week.

Marathon Oil (NYSE :), Diamondback Energy NASDAQ:), and Occidental Petroleum NYSE : led energy higher, with Occidental Petroleum up over 7%.  

In the meantime, consumer discretionary was affected by weakening casino stocks such as Caesars Entertainment and Penn National Gaming (NASDAQ) even though there were favorable conditions for betting on sports during NCAA March Madness.

Tesla (NASDAQ:), however, bucked the trend lower in the sector, rising more than 1% ahead of the opening of the electric vehicle maker’s Gigafactory in Berlin on Tuesday.

Tesla rival Nio (NYSE;) plunged more than 3% after Deutsche Bank reduced its price target for the company to $50, from $70. However Deutsche bank still expressed optimism over the possibility that Chinese EV maker will grow deliveries to 25,000 per months from 10,000 per month in this year’s.

Boeing (NYSE,:) was a significant Dow component. It fell 4% after China Eastern Airlines(NYSE:) reportedly ground its 737-880 fleet in response to a fatal collision in the mountains of Southern China.

Alleghany (NYSE 🙂 surged over 24% in other news after Berkshire Hathaway NYSE : announced its plans to purchase the insurance firm for $11.6 billion.