SPY is trading 1.1% down in pre-market as the S&P 500 tracks a sharp semiconductor and AI technology selloff alongside a more hawkish Federal Reserve tone and escalating Middle East tensions.
- Investors are taking profits in richly valued chip and AI names following TSMC’s massive capex plans and sector-wide valuation concerns.
- Broader risk sentiment is being dampened by rising geopolitical risks and renewed concerns regarding potential rate hikes.