iShares Expanded Tech-Software Sector ETF is trading 2% down today as a stronger-than-expected U.S. jobs report reinforced expectations for higher-for-longer interest rates, pressuring growth-sensitive software valuations.
- Traders are rotating toward cyclicals and areas seen as less rate-sensitive, leaving the software sector lagging broader indices.
- Growth valuations are under pressure despite supportive AI headlines, including new NVIDIA expansion plans in South Korea.
- Investors remain cautious toward expensive software and cloud stocks as the market recalibrates for a sustained high-rate environment.