SPYG is trading 2.2% down today as its heavy information technology weighting tracks a global selloff in tech and semiconductor names.
- Investors are reacting to sharply higher AI-related capital expenditure plans from TSMC, prompting a rotation away from richly valued AI and chip leaders.
- Increasingly hawkish Federal Reserve rhetoric linking AI infrastructure build-outs to persistent inflation risks has pushed yields and risk premia higher on long-duration growth stocks.