QQQ is trading 1.6% down today as a broad sell-off in semiconductor and AI stocks weighs on the index following Taiwan Semiconductor (TSMC) raising its capital expenditure forecasts.
- TSMC's increased spending outlook has stoked investor anxiety over the sustainability of AI infrastructure margins and overall profitability.
- Tech valuations are facing additional headwinds from hawkish Federal Reserve remarks regarding persistent inflation and the necessity of higher-for-longer interest rates.
- Rising geopolitical risks stemming from U.S.-Iran tensions and climbing oil prices are further contributing to the downward pressure on growth assets.