SPY is trading 1.4% down today as escalating U.S.-Iran tensions drive oil prices higher and heavy AI capital spending by tech giants weighs on market sentiment.
- Geopolitical risks are dampening global risk appetite, with rising oil prices putting pressure on broader equities.
- High-weight sectors like information technology and communication services are underperforming as investors reassess the profitability of massive AI investments from firms like Alphabet and Tesla.
- The index's significant exposure to tech—including a 37% weighting in information technology—is amplifying the decline during this sector-wide reassessment.