Tech ETF (XSD) is trading at $614.41 (-2.56%) as the semiconductor sector faces a technical pullback following a period of significant outperformance.
- Bank of America has flagged the semiconductor group as a crowded trade, noting that Relative Strength Index (RSI) levels have surged above 80.
- The move is characterized as a sector-specific reset and rotation within tech rather than a broader market decline, as major U.S. indices continue to trade higher.
- While immediate sentiment has cooled following the recent rally, the long-term outlook for AI infrastructure remains a supportive fundamental backdrop for the industry.