TECL is trading 8.1% down as the information technology sector sells off following hawkish Federal Reserve commentary regarding AI-driven inflation and geopolitical risks.
- Fed officials warned of potential rate hikes tied to AI-related inflationary pressures and escalating U.S.-Iran conflict risks.
- Rising Treasury yields and a sharp pullback in AI-linked semiconductor and growth names are creating outsized downside for the 3x leveraged fund.
- The broader tech space remains under pressure as investors reassess growth valuations in light of a more restrictive monetary outlook.