SPY is trading 0.8% down today as a broad semiconductor and AI-driven tech selloff weighs on the index.

  • Investors are taking profits in richly valued chip and AI names amid concerns about high capital spending and geopolitical tensions with Iran.
  • A more hawkish tone from the Federal Reserve is adding pressure to high-growth sectors.
  • Defensive sectors like healthcare and energy remain resilient, supported by generally solid earnings reports.