S&P 500 Extends Drop on Tech Bubble Fears, Fed Tightening, Middle East Tensions

The S&P 500 index continued its decline, hitting two-week lows as a combination of factors weighed on investor sentiment. Fears of a tech bubble, the Federal Reserve's ongoing tightening of monetary policy, and an escalation of the conflict in the Middle East have dragged the benchmark lower.

The Philadelphia Stock Exchange Semiconductor Index, a key gauge of tech sector health, registered its worst weekly performance since April. This broad market weakness underscores the recent shift in risk appetite, with participants closely watching for further downside.

While the correction phase remains in focus, the immediate trajectory will depend on incoming economic data and any de-escalation in geopolitical tensions.