XLK is trading 2% down today as investors lock in profits following an extended rally in AI and semiconductor stocks.
- Geopolitical tensions between the U.S. and Iran are reinforcing a broader risk-off mood, weighing heavily on high-valuation technology names.
- A global pullback in chipmakers is being driven by emerging concerns regarding the sustainability of AI infrastructure spending.
- The sector's largest holdings are under pressure as the market reacts to shifting macroeconomic conditions and sector-specific headwinds.