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XLK · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is State Street Technology Select Sector SPDR ETF (XLK) stock moving?
XLK fell from a close of 191.00 on Oct 28 to a low of 162.38 on Nov 5, a drop of about 15%. The decline included a 4.9% one-day fall on Oct 30 on 19.2M shares and a peak volume of 33.5M shares on Nov 5, versus roughly 7-8M shares on typical late-October sessions. Since then the ETF has recovered to 168.91 on Nov 10, but on lower volume, and the Nov 10 close was below the Nov 9 close, so the rebound has not yet shown follow-through. The news backdrop supports the selloff narrative: Benzinga reports the tech sector's forward P/E has fallen to 18.2, back to pre-ChatGPT levels, which signals a sharp de-rating of AI-linked names. Some support comes from the valuation reset itself, a 7% CoreWeave rebound on Nov 3, and crude oil falling below $88 on Nov 9, which helped a broad market advance. Political risk is a counterweight, since the Democrats' Senate win and move toward the House were cited as a drag on futures on Nov 4. The news set is thin and contains no XLK-specific company catalysts, so the direction over the coming weeks depends mainly on whether the AI sentiment rebound holds and on the upcoming earnings season.
News behind the analysis
- Tech Stocks Are Trading as If ChatGPT Never Happened, Data ShowsThe tech sector's forward P/E has dropped to 18.2, back to pre-ChatGPT levels, according to analysts at BofA, Cantor and 22V Research.
- CoreWeave Stock Is Soaring Tuesday: What's Going On?CoreWeave (CRWV) rose over 7% to $53.75 in an AI stock rebound, ahead of Q3 earnings.
- Dow Futures Fall as Democrats Take Control of Congress: Peter Schiff Warns Trump Now Has a 'Scapegoat' for the 'Coming Economic Collapse'U.S. stock futures fell early Wednesday as Democrats won the Senate and moved toward taking the House.
- Why Is Delta Air Lines Stock Surging on Monday?Delta rose as crude oil fell below $88 per barrel and industrial stocks led a broad market advance.
- Jim Cramer Says Micron Shouldn't Follow 'Whatever' SK Hynix Does As MU Shares Jump After Hours: 'I'm Hoping The Linkage Ends One Day'Micron shares rose 1.37% after hours as Jim Cramer highlighted their close tracking of SK Hynix.
About State Street Technology Select Sector SPDR ETF
XLK is one of State Street's Select Sector SPDR funds. It holds the roughly 75–80 technology companies in the S&P 500, and it's one of the oldest and largest tech ETFs: it launched in December 1998 and manages about $120 billion. Its main distinguishing feature is concentration: Nvidia, Apple and Microsoft together make up about 42% of the fund, and the top 10 holdings about 65%.
How the fund works
The fund tracks the S&P Technology Select Sector Daily Capped 35/20 Index, which weights stocks by market value but caps how big any single holding can get. It holds the actual stocks and uses no leverage. It charges a low expense ratio of about 0.08% a year and pays a small dividend quarterly (yield about 0.5%). The main risk is concentration: because a few mega-cap chip and software stocks make up so much of the fund, its price swings more than the overall S&P 500.
What usually moves XLK
- AI data-center and chip spending
- Results from Nvidia, Apple and Microsoft
- Interest rates and tech stock valuations
- Semiconductor demand cycles
- Enterprise software and IT budgets