XLK is trading 2.2% down today on a sector-wide rotation out of expensive tech following semiconductor weakness and rising geopolitical tensions.
- Semiconductor and memory-chip stocks are under pressure following valuation concerns over TSMC’s massive capex plans and hawkish Fed commentary regarding AI-linked inflation.
- Heightened risk-off sentiment stemming from U.S.-Iran tensions is accelerating the pullback from the recent AI-driven rally as investors exit high-valuation growth positions.