iShares U.S. Technology ETF Price & Performance (IYW)

Major technology companies faced a sharp sell-off recently, with Tesla, Nvidia, and Alphabet all posting significant losses. The downturn reflects broader market fears, including recession concerns and the impact of new tariffs. AI-focused stocks, such as Palantir, also saw declines, highlighting volatility in this previously booming sector.123

The iShares U.S. Technology ETF reached an RSI of 29.1, signaling oversold conditions. Some investors see this as a potential buying opportunity, particularly as the tech sector has struggled against broader market trends. This could mark a turning point, offering long-term opportunities despite near-term challenges.245

Investors are increasingly adopting defensive strategies as market sentiment deteriorates. Indicators like the Fear & Greed Index and the Buffett Indicator reflect heightened caution. Defensive ETFs are gaining interest as volatility rises, and concerns over tariffs and economic growth persist, reshaping risk management approaches.673