Currently, 8 out of 11 sectors in the S&P 500 are trading below their 200-day moving averages, indicating a potential for a deeper selloff. The recent market decline is expected to accelerate and turn into a significant correction once the Technology sector turns negative and the AI-driven rally collapses. At present, only the Energy and Health Care sectors are acting as inflation hedges. This trend suggests caution for investors as broader market weakness may be imminent.
As of Oct 01, 2026 18:45 WIB, the Technology sector ETF XLK is trading at USD 197.47 with a 1-day gain of 0.88% on Pluang, despite the article's concern over a potential collapse in the AI-driven rally. Market participants on Pluang show a strong selling bias with 95% of order activity as sell and only 5% buy, indicating caution among investors. The ETF's market cap stands at $126.42 billion, reflecting significant investor interest in the sector even amid broader market weakness.
