The technology sector, as measured by the XLK ETF, dropped significantly due to a negative reaction to the initial wave of quarterly earnings reports. Disappointing guidance from semiconductor company Lam Research and a negative free cash flow report from Meta soured investor sentiment. This sector-specific news was amplified by a broader market downturn, with rising oil prices and geopolitical tensions contributing to a risk-off environment. A general pullback in AI-related stocks also weighed heavily on the tech-heavy indices.