SPY is trading 0.8% down today as the S&P 500 tracks a sharp semiconductor and AI tech selloff, with investors taking profits in richly valued chip names and AI winners.
- A more hawkish tone from the Federal Reserve, coupled with geopolitical tensions in the Middle East and higher oil prices, is reinforcing a broader risk-off bias.
- High-growth technology shares are leading the index lower, while defensive sectors continue to show relative strength amid the volatility.