SPY ETF Dips Amid Tech Weakness and AI Spending Concerns
The SPDR S&P 500 ETF Trust (SPY) fell 1.08% on Thursday, dragged down by tech sector declines following mixed earnings reports from Meta (META) and Microsoft (MSFT). Investor sentiment soured as markets questioned the sustainability of heavy AI-related expenditures.
Real Estate, Financials, and Healthcare sectors bucked the trend with gains, while Consumer Discretionary and Communication Services joined Tech in the red. The S&P 500 (SPX) mirrored the drop with a 0.99% loss, and the Nasdaq 100 (NDX) tumbled 1.47%.
Rising bond yields and Fed Chair Powell's tempered rate-cut expectations compounded the pressure. With a lingering US government shutdown and earnings from two 'Magnificent Seven' companies pending, volatility risks remain elevated for SPY.
