🔴 SOXL is trading 10.5% down today as AI valuation concerns and geopolitical tensions spark a chip selloff

SOXL is trading 10.5% down today as leveraged semiconductor exposure amplifies a sharp pullback in the information technology sector.

• Stretched AI chip valuations and heavy capital spending by foundries like TSMC are weighing on high-beta tech stocks.
• Hawkish Fed rhetoric regarding inflation and interest rates, combined with rising geopolitical tensions in the Middle East, has triggered broad risk-off sentiment.
• The decline in global chipmakers is dragging Nasdaq futures lower, further impacting leveraged instruments.