This shortened week started off with the tech sector doing what it has done best this month, and even back in late 2025 — leading to the downside. Wednesday’s rebound is par for the course in modern markets, where every small dip gets a second chance. But the tech sector, specifically through the eyes of the biggest and longest-running exchange-traded fund (ETF) dedicated to that sector, is teetering.
SPDR S&P 500 Technology ETF (XLK) has a lot going for it — more than $90 billion in assets, a 27-year history, and a strong position in some of the most popular and iconic U.S. tech stocks. And at 31x earnings, this growth sector is not outrageously valued, at least when considering the prospects of the artificial intelligence (AI) boom.
