A sell-off in technology stocks saw the Nasdaq Composite post its biggest one-day decline in more than three months, while the Dow Jones Industrial Average closed at a record high.

The Nasdaq Composite ended the day 1.3 per cent lower at 6,824.34. The S&P 500 technology sector was the biggest loser on the benchmark index, falling 2.6 per cent for its worst day since June.

Investors soured on the sector as they eyed tax reform and upbeat economic data showing the US economy expanded at its fastest clip in three years in the third quarter. That helped reignite a sector rotation seen after Donald Trump won the presidential election, as financials climbed and tech decline. Concerns about economic growth had driven some investors towards technology companies in search of earnings growth.

The S&P 500 ended the day little changed at 2,626,05, with the decline in tech companies offset by a 2.7 per cent gain in telecoms. Meanwhile, the Dow Jones Industrial Average rose 0.4 per cent to 23,940.34.

Elsewhere, the dollar index, a gauge of the buck against a basket of peers, was flat at 93.24. The yield on 10-year US Treasuries, which move inversely to price, rose 5.3 basis points to 2.379 per cent.

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