iShares Expanded Tech-Software Sector ETF is trading 5% down as a stronger-than-expected May jobs report reinforces expectations that the Federal Reserve will keep interest rates higher for longer, weighing on long-duration software valuations.
- The broader technology sector and Nasdaq are experiencing a sharp pullback as investors rotate away from growth assets toward more cyclical and rate-resilient areas.
- Risk-off sentiment is being intensified by recent volatility in global chip and AI-related names, impacting the wider information-technology complex.