Rime’s spun-off karaoke unit triggered a $17 billion tech sector selloff on February 13, as investors re-rated valuations across related digital entertainment names. The abrupt decline reflected market concerns over legacy business exposures and potential write-downs tied to the division’s restructuring.

Following the selloff, equity futures linked to Rime extended losses, reflecting broader unease in AI-driven growth stocks. Futures traded down as much as 0.5%, signaling continued risk aversion ahead of key macroeconomic readings.

With U.S. February inflation data due later this week, traders are positioning defensively, heightening volatility for Rime shares. A hotter-than-expected CPI print could amplify selling in high-multiple technology names, while a cooler reading might offer a rebound catalyst.