EEM is trading 3% down today as investors cut exposure to higher-risk emerging markets amid a broader risk-off tone in global equities.
- Heavy weakness in AI-related semiconductor stocks is weighing on tech-heavy Asian markets, which represent a significant portion of the index's China and Taiwan allocations.
- Renewed U.S.–Iran tensions in the Gulf are further dampening investor appetite for risk assets.
- The MSCI Emerging Markets index is seeing disproportionate pressure due to its high concentration in the semiconductor sector and sensitive regional markets.