By Avantika Chilkoti and Michael Wursthorn 

Shares of technology companies fell Monday after the Trump administration moved to curb Huawei Technologies Co.'s access to U.S. technology, pushing major stock indexes lower to start the week.

The Dow Jones Industrial Average fell 164 points, or 0.7%, to 25603 in early morning trading, while the S&P 500 declined 0.8%. The tech-heavy Nasdaq Composite fell further, shedding 1.6%.

Investors' trade anxieties ratcheted higher as U.S. companies cut Huawei's access to their technology following the Trump administration's decision last week to put the Shenzhen-based telecom giant on a trade blacklist. Google parent Alphabet will restrict Huawei's access to certain Android features, while Qualcomm has suspended shipment of its chips, The Wall Street Journal reported.

Shares of technology companies fell broadly, with chip makers and hardware manufacturers among the hardest hit. Investors worried the move against Huawei will further inflame the situation between the U.S. and China, which has only deteriorated in recent weeks following a new round of tariffs from both sides.

That has investors positioning themselves for more bouts of volatility, a sign that many expect the market's erratic swings to continue. Assets in exchange-traded funds that tend to profit when volatility rises hit a record $3.1 billion in May, according to FactSet data.

At this stage, the main issue is gauging the impact of fresh uncertainty on the global economy through weakened sentiment and via financial markets, according to Marco Valli, head of macro research at UniCredit, rather than the direct impact of lower global trade.

The S&P 500's technology sector tumbled more than 2%. Shares of Apple were among the hardest hit, falling 4.3%. Alphabet declined 2.5%.

Qualcomm, meanwhile, dropped 5.4%.

In Europe, the Stoxx Europe 600 was down 1.4% in recent trading. In Asia, the Shanghai Stock Exchange dropped 0.4% and Hong Kong's Hang Seng Index dropped 0.6%. Japan's Nikkei gained 0.2%.

Shares in Germany's largest lender Deutsche Bank briefly dipped below an all-time low and were down 3% after analysts at UBS recommended investors sell the stock.

The transportation and technology services sectors also dragged European markets lower on Monday. Ryanair dropped 3.7% after the Dublin-based carrier posted disappointing earnings.

This week, investors will be watching for data on U.S. home sales and eurozone purchasing managers surveys on Thursday.

Write to Avantika Chilkoti at Avantika.Chilkoti@wsj.com and Michael Wursthorn at Michael.Wursthorn@wsj.com

(END) Dow Jones Newswires

May 20, 2019 10:26 ET (14:26 GMT)