Deutsche Bank restored an overweight stance on technology after a three-week decline, Reuters and Investing.com reported, saying the retreat improved the sector’s appeal relative to its risks.
The outlets said the bank’s Oct. 30 analysis showed its technology group down about 11% over the preceding three weeks while the rest of the S&P 500 gained nearly 6%, a gap of more than 16 percentage points. Investing.com said mega-cap growth shares also lagged, but assigned the 11% decline to technology alone.
Reuters and Investing.com linked the retreat to questions about whether heavy artificial intelligence spending would generate enough returns. The bank’s reported rationale was that lower prices and lighter investor positioning improved the sector’s appeal. Investing.com separately reported that technology positioning had fallen to neutral.
The main indexes also fell sharply Friday, Oct. 30. Nasdaq data showed the Nasdaq-100 down 3.46% at 28,384.85, while S&P Dow Jones Indices reported the S&P 500 down 1.82% at 7,580.07. Reuters separately reported that the Nasdaq-100 lost more than $2 trillion in market value during October. EconoTimes has also covered recent technology volatility.
Reuters and Investing.com said Deutsche Bank also pointed to earlier periods when technology outperformed: the bank’s reported historical figures put average gains at 32%, with a 30-percentage-point lead over the rest of the S&P 500. The figures were part of the rationale for the recommendation, not a stated forecast. The outlets differed on its reach: Reuters described a U.S. technology call, while Investing.com characterized it as global. Investing.com said the team behind the call was led by Parag Thatte and Chief Strategist Binky Chadha.
