Technology stocks, represented by the State Street Technology Select Sector SPDR ETF (XLK), faced significant declines due to rising interest rates and inflation pressures, breaking important technical support levels. The sector's previous uptrend since late July was violated, with a risk of further downside if XLK closes below its 50-day moving average, potentially targeting a $175 support level. Inflation has reversed the historical price deflation in tech, with computer-related prices rising 9.7% year-over-year, while rising borrowing costs threaten margins and growth, especially in AI-driven capital expenditures. Continued Federal Reserve tightening could constrain debt market access, adding pressure on the sector's outlook.
The technology sector, represented by XLK, is currently trading at USD 186.23 on Pluang, down 2.21% in the last day. This decline aligns with the sector's challenges from rising rates and inflation pressures as of Oct 15, 2026 21:15 WIB.
