🔴 XLK is trading 2.6% down today as TSMC earnings trigger a semiconductor-led selloff

XLK is trading 2.6% down as a concentrated semiconductor-led selloff drags the broader technology sector lower.

• A negative market reaction to TSMC’s record earnings and massive capex hike has intensified concerns that AI-related chip valuations ran too far, too fast.
• Options-expiry-driven volatility and a rotation into defensive sectors are amplifying downside moves in megacap tech and chip names.
• The broader tech sector is under pressure as investors recalibrate positions following the recent rally in AI-linked stocks.