Technology stocks, particularly semiconductor and storage companies, are experiencing a broad sell-off in the pre-market session, driving the XLK ETF lower. This follows a period of significant gains fueled by enthusiasm for artificial intelligence, with current sentiment suggesting concerns about high valuations and a potential 'AI overbuild'. Even a strong earnings report from industry giant TSMC was not enough to counter the negative momentum, indicating a sector-wide capital rotation and reassessment of the recent AI-driven rally.
Technology Stocks Decline on Chip Sector Weakness
Technology sector
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