iShares Expanded Tech-Software Sector ETF is trading 2% lower today as a sharp multi-day AI-driven rally in software and IT services names begins to unwind.
- Profit-taking in richly valued software stocks is pressuring the broader information technology sector ahead of key macro data and major AI-related earnings.
- Traders are de-risking high-beta software and security holdings, including index heavyweights Broadcom and CrowdStrike, which are both scheduled to report results tonight.
- A cautious stance toward growth-oriented tech ETFs is being further encouraged by mixed index futures and anticipation of the Services PMI report due later this morning.