The S&P 500 is experiencing a selloff today, driven by pressure on technology stocks, particularly in the semiconductor sector, due to their reliance on AI-driven demand. This sector-specific downturn is compounded by expectations of fewer Federal Reserve rate cuts, which have historically impacted growth sectors like technology. Despite the selloff, the decline is relatively contained, with less than 40% of the index's constituents in the red, suggesting that the downturn may be short-lived. Utility stocks, which have benefited from data center power needs, are also feeling the impact of shifts in the tech sector. The narrow scope of today's declines indicates that investor sentiment remains relatively stable, with no immediate signs of broader macroeconomic contagion.
The Invesco S&P 500 Equal Weight ETF (RSP) saw a slight decline, dropping 0.40% to $181.47 at 12:00 PM on Monday, January 27.