Semiconductors are struggling today with the VanEck Semiconductor ETF (SMH) down 2.49% currently. This comes as investors rotate into other areas of the Technology (XLK) sector.

The main benefactors of the Technology rotation appear to be software companies such as Atlassian Corporation (TEAM), Snowflake Inc. (SNOW), DocuSign, Inc. (DOCU), and Elastic N.V. (ESTC) to name a few.

Notably, Salesforce, Inc. (CRM) is also performing well this afternoon as Citigroup upgraded the stock price target to $290 from $260. The company is expected to report earnings on Wednesday, after the close.

The market is also going back to safe-have basics. Consumer Staples (XLP) is leading the way, followed by Utilities (XLU). Energy (XLE) is one of the best performing sectors this afternoon with crude oil prices rallying around 7% in the last three days on geopolitical concerns.

On the economic front, Dallas Fed Manufacturing Index came in at -9.7, beatings consensus of   -16 and continuing its uptrend. However; the index has been negative since May 2022.

The survey showed broader business conditions in August were less pessimistic with most indicators showing a sizable uptick.