European technology and semiconductor stocks experienced a decline on Monday, driven by concerns regarding a potential recession in the United States following disappointing economic data. This situation prompted investors to shift away from this year's leading stocks in favor of safer assets.

The STOXX technology index fell by 4.1%, marking it as the poorest performer among the sectoral indices within the broader STOXX 600, which itself decreased by approximately 3%.

Additionally, news regarding a possible delay in Nvidia's AI chip production further dampened market sentiment.

The technology index had already suffered a 6% drop on Friday due to weaker-than-anticipated job growth and factory output in the US, along with unsatisfactory earnings reports from major player Intel.

Companies involved in chip equipment saw a significant decline of 12%, following a 13% drop the previous Friday.

ASML, the leading manufacturer of equipment for chip production, saw its shares decrease by 4%, while BE Semiconductor and STMicroelectronics both experienced declines of around 5%.