The S&P 500 is experiencing a selloff today, driven by pressures in the technology sector, particularly among semiconductor companies like Nvidia and Broadcom. These stocks are facing challenges due to their heavy reliance on AI-driven demand, which is being reevaluated amid expectations of fewer Federal Reserve rate cuts. Additionally, utility stocks such as Vistra and Constellation Energy, which have previously benefited from data center power needs, are also feeling the impact of shifts in the tech sector. Despite the downturn, the limited breadth of the selloff suggests that investor sentiment remains relatively stable, with no immediate signs of broader macroeconomic contagion. This stability could prompt a rotation out of tech stocks as investors reassess their positions.
The MAX S&P 500 4X Leveraged ETN (SPYU) experienced a significant decline, dropping 7.07% to $48.93 at 12:00 PM on Monday, January 27.