🔴 XLK is trading 1.6% down today as oil hits $109 and Fed signals fewer rate cuts

XLK is trading 1.6% down today as escalating Middle East tensions and a hawkish Federal Reserve outlook weigh heavily on the technology sector.

• Crude oil spiked to $109 per barrel following Iranian drone strikes on a Kuwaiti refinery and a potential U.S. naval blockade, intensifying global inflation concerns.
• The Federal Reserve signaled a restrictive policy through 2026, projecting at most one rate cut as energy shocks complicate the central bank's inflation fight.
• The tech-heavy NASDAQ fell 1.14% in tandem as geopolitical instability and the prospect of sustained high interest rates pressure growth-oriented assets.