State Street Technology Select Sector SPDR ETF is trading 1.6% up today as investors buy the dip following several days of heavy selling driven by AI-related disappointment and stretched valuations.
- The broader market backdrop is supportive, with Nasdaq futures rising over 1% ahead of key U.S. PPI inflation data, signaling a risk-on tone for large-cap tech and semiconductors.
- Market participants are reassessing previous overreactions to AI spending and rotation out of high-beta technology names, helping the sector recover a portion of its recent losses.