Deutsche Bank upgrades US tech, says selloff has gone too far

Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST

Nov 2 : Deutsche Bank turned bullish on US technology stocks, reversing a downgrade made three weeks ago, saying a sharp selloff has created an attractive buying opportunity and much of the AI-related risk was already priced in.

More than $2 trillion was wiped off the Nasdaq 100's market value last month, as investors reassessed AI-related investments and growth expectations.

Here are more details from the brokerage's Friday note:

• Tech and mega-cap growth stocks have lagged the rest of the S&P 500 by more than 16 per centage points over the past three weeks, falling about 11 per cent while the broader index rose nearly 6 per cent, leaving the sector near the low end of its historical trading range

CNA Games

Guess Word
Crack the word, one row at a time

Buzzword
Create words using the given letters

Mini Sudoku
Tiny puzzle, mighty brain teaser

Mini Crossword
Small grid, big challenge

Word Search
Spot as many words as you can
Show More
Show Less

• "Magnificent Seven" results reinforced investor concerns about the pace of returns from heavy AI spending, contributing to recent weakness in large-cap technology stocks

• Technology's relative performance has fallen to the bottom of its long-term range, a level that has marked attractive entry points in recent years

• Previous rotations back into tech have resulted in average gains of about 32 per cent and roughly 30 per centage points of outperformance versus the rest of the S&P 500

• Overall equity positioning remains relatively light despite solid earnings growth, leaving room for investors to increase exposure if corporate profits remain resilient

Newsletter

Week in Review

Subscribe to our Chief Editor’s Week in Review

Our chief editor shares analysis and picks of the week's biggest news every Saturday.

Sign up for our newsletters

Get our pick of top stories and thought-provoking articles in your inbox

Subscribe here

Get the CNA app

Stay updated with notifications for breaking news and our best stories

Download here

Get WhatsApp alerts

Join our channel for the top reads for the day on your preferred chat app

Join here