{"id":34312,"date":"2025-07-15T15:03:29","date_gmt":"2025-07-15T15:03:29","guid":{"rendered":"https:\/\/financialrush.com\/?p=34312"},"modified":"2025-07-15T15:03:29","modified_gmt":"2025-07-15T15:03:29","slug":"investors-pile-into-us-tech-stocks-at-fastest-pace-in-16-years","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=34312","title":{"rendered":"Investors pile into US tech stocks at fastest pace in 16 years"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Stay informed with free updates<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Simply sign up to the <!-- -->US equities<!-- --> myFT Digest &#8212; delivered directly to your inbox.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=03637c5e-312d-44c0-98bd-fbbd1d354530&amp;concept-id=971c884d-f8fa-45c8-af59-bee0d7f28284\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Investors have been piling into tech stocks at the fastest rate in 16 years, fuelling Wall Street\u2019s rapid rebound from the rout triggered by Donald Trump\u2019s \u201cliberation day\u201d tariffs in April, a closely watched survey of fund managers has shown. <\/p>\n<p>Between April and July, allocations to the sector jumped by the largest amount since March 2009, according to a monthly poll by Bank of America. <\/p>\n<p>The resurgence of tech shares \u2014 which bore the brunt of the April sell-off \u2014 is the latest sign that investors are brushing off <a href=\"https:\/\/www.ft.com\/donald-trump\" data-trackable=\"link\">Trump<\/a>\u2019s latest tariff threats and betting that the so-called \u201cMagnificent Seven\u201d will be able to continue to enjoy rapid growth in profits, which has seen them power the bulk of Wall Street\u2019s gains in recent years.<\/p>\n<p>\u201cBig tech is back in the driver\u2019s seat,\u201d said Venu Krishna, head of US equities strategy at Barclays. <\/p>\n<p>The tech-focused Nasdaq Composite index has risen more than 33 per cent from its April lows to record a series of record highs. Chipmaker Nvidia last week became the first company to reach a valuation of $4tn. <\/p>\n<figure class=\"n-content-image n-content-image--full\" data-component=\"image-set\"><picture><source media=\"(min-width: 700px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A10ddf677-8927-47eb-8e50-a42f648a7900?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A10ddf677-8927-47eb-8e50-a42f648a7900?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A10ddf677-8927-47eb-8e50-a42f648a7900?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=3 3x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A10ddf677-8927-47eb-8e50-a42f648a7900?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=4 4x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A10ddf677-8927-47eb-8e50-a42f648a7900?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=5 5x\" width=\"3500\" height=\"2500\"\/><source media=\"(max-width: 490px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A3e921951-5a76-4f03-ad25-bc0b02d3c7f4?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A3e921951-5a76-4f03-ad25-bc0b02d3c7f4?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A3e921951-5a76-4f03-ad25-bc0b02d3c7f4?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=3 3x\" width=\"1500\" height=\"2000\"\/><\/picture><\/figure>\n<p>\u201cTech remains our favourite sector globally,\u201d said Marija Veitmane, head of equity research at State Street, pointing to their \u201creliable strong earnings growth with high margins and strong cash flow generation\u201d.<\/p>\n<p>\u201cNo other sector can offer that,\u201d she said. <\/p>\n<p>Microsoft, Meta, Alphabet, Amazon, Apple and Tesla will all report second-quarter earnings over the next two weeks.<\/p>\n<p>\u201cWe expect [big tech] to beat earnings expectations. The only question is, what is the magnitude of the surprise?\u201d asked Krishna. <\/p>\n<p>Technology stocks delivered a significant positive surprise in their earnings for the first quarter of this year, which helped share prices to rebound and break through their previous heights. <\/p>\n<p>\u201cEarly on in the year, we did have greater concerns about the tariff and regulatory backdrop. But what we\u2019ve seen recently has been pretty positive,\u201d said Jessica Henry, investment director at Federated Hermes, referring in part to the Trump administration\u2019s relaxation of curbs on chip exports to China this week. <\/p>\n<p>\u201cIt\u2019s bullish not only for Nvidia but for semiconductors and AI-related sectors more broadly. It\u2019s a positive signal that indicates willingness from the US government to relax certain rules to ensure US tech competitiveness,\u201d Henry said. <\/p>\n<p>A net 14 per cent of the fund managers surveyed by BofA are now overweight the technology sector, up from a net 1 per cent underweight last month. Despite the resurgence, enthusiasm for the sector measured by the bank\u2019s long-running poll remains below average. <\/p>\n<p>\u201cValuation is the number one concern\u201d about the tech sector, said Elyas Galou, investment strategist at BofA. Fund managers \u201crealise they are buying one of the most expensive markets over the past 100 years\u201d, he added. <\/p>\n<p>The survey also suggested that fund managers remain wary of US assets more broadly, with a short position in the US dollar cited as the most crowded trade in markets. The currency has seen a significant devaluation this year so far, losing almost 10 per cent of its value compared to a basket of other currencies. <\/p>\n<p>\u201cInvestors are emotionally bearish on the US, but they are not physically bearish,\u201d Galou said. \u201cThey are bullish on tech, because of AI, but they are bearish on the dollar because of US trade policy and fiscal policy.\u201d<\/p>\n<p>For the previous three months until July, \u201clong gold\u201d had been considered the most crowded position by fund managers.<\/p>\n<p>Nervousness around the dollar once again boosted sentiment towards the euro. Of the fund managers surveyed, a net 20 per cent of respondents were overweight the common currency \u2014 the largest proportion since January 2005. <\/p>\n<p>A net 41 per cent of investors said they were overweight Eurozone equities, compared with a net 1 per cent in January. <\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/03637c5e-312d-44c0-98bd-fbbd1d354530\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Stay informed with free updates Simply sign up to the US equities myFT Digest &#8212; delivered directly to&hellip;\n","protected":false},"author":5,"featured_media":34313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-34312","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/34312","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34312"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/34312\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/34313"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34312"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34312"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34312"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}