Invesco PHLX Semiconductor ETF is trading 1.7% down today as the May CPI release reinforced expectations for higher-for-longer interest rates, pressuring the broader information technology and semiconductor space.
- The broader U.S. market is selling off as growth valuations face headwinds from elevated yields following the inflation report.
- Large-cap tech and AI leaders like Nvidia are trading lower, dragging down semiconductor-heavy indices and ETFs.
- Investors are rotating cautiously amid recent sector volatility and a shift in sentiment regarding high-valuation tech stocks.