Deutsche Bank upgrades global tech stocks to overweight after selloff

Deutsche Bank upgraded global technology stocks to "overweight" after a sharp selloff, citing improved risk-reward as investor positioning retreated to neutral and AI demand concerns are largely priced in. The tech group fell 11% over three weeks, underperforming the rest of the S&P 500 by over 16 percentage points, pushing relative performance to the bottom of its decade-long trend channel. Positioning now aligns with anticipated earnings growth of around 10%, versus 47% in the third quarter. Previous rotations back into tech delivered average gains of 32%, outperforming the broader index by 30 points. Excluding tech and energy, S&P 500 earnings growth remains robust at 12%, though risks from regulation and geopolitical escalation persist.