Tech’s 37% S&P 500 Weight Raises Risk From AI Stock Rotation

Technology’s 37% share of the S&P 500’s market capitalization makes a selloff in AI-linked stocks more consequential for U.S. indexes as investors rotate into other sectors. The iShares Semiconductor ETF (SOXX) has fallen more than 23% over the past month as investors worried that AI-linked companies were borrowing too much to fund capital spending. Intel and Cerebras Systems shares each fell nearly 50%, making them the worst-performing SOXX holdings. The S&P 500 technology sector accounts for 37% of the benchmark’s total market capitalization.

Source: TokenPost