SPY is trading 0.9% down today as a deep global semiconductor selloff and tech-led risk-off sentiment pressure the broader market.

  • Stretched AI-related valuations and sharply higher capital spending in the chip sector are weighing on high-growth technology stocks, which dominate the index.
  • Renewed geopolitical tensions in the Middle East are further dampening investor appetite for risk assets.
  • The S&P 500 remains under pressure as investors reassess growth expectations for the semiconductor industry amid rising costs.