The technology sector experienced a significant downturn, with the XLK ETF falling 1.52%, largely driven by a global sell-off in semiconductor stocks. The primary catalyst was the earnings report from South Korean chipmaker SK Hynix. Despite a substantial increase in profits, the results fell short of high investor expectations, triggering a sharp decline in its shares and a ripple effect across the tech industry. This event, coupled with broader concerns about AI-related valuations and the upcoming Federal Reserve decision, has created a risk-off sentiment in the tech sector.