XLK is trading 1.5% down at $134.65 as geopolitical tensions in the Middle East intensified following Iran's rejection of a U.S. ceasefire proposal on March 26.
- The broader technology sector retreated alongside equities, with the Nasdaq Composite falling 0.89% as investors rotate away from growth-sensitive stocks toward defensive and safe-haven assets.
- Rising energy inflation concerns, driven by Brent crude climbing above $104 per barrel, have increased risk-off sentiment across the tech sector.
- The selloff reflects macro headwinds rather than sector-specific catalysts, heavily impacting the fund's 98.9% allocation to Information Technology.