Tech Sector Dives 8% in July Amid Selloff of AI and Memory Stocks

The Technology sector (XLK) experienced a significant decline in July, plummeting nearly 8% as a technology-led market selloff spread beyond semiconductor stocks during the first half of the month. Despite strong earnings from tech giants like Microsoft and Apple, the sector's downturn was driven by AI and memory stock performance.

The slump was broad-based, with many prominent companies in the Technology sector feeling the pinch. State Street Technology Select Sector SPDR ETF (XLK), a leading exchange-traded fund tracking the sector, took a hit as the selloff intensified.