Tech set to still sway US stock market's course despite AI-driven swoon
QQQ•Technology remains more than 35% of the S&P 500 despite a month-long pullback, and its gains since October 2022 exceed 200%. The sector's forward P/E fell to 17.1, below the broader market's 17.9, as investors watch upcoming earnings, economic data and geopolitical developments.
1. Tech retains heavy weight
Despite a month-long slide in technology and AI-related stocks, technology remained the S&P 500's largest sector, with a weight above 35% as of Thursday's close. The sector has gained more than 200% since the bull market began in October 2022, nearly double the S&P 500's gain.
2. Valuations fall below market
The sector's forward price-to-earnings ratio was 17.1 on Thursday, down from above 32 in October 2025, while the overall S&P 500's ratio was 17.9. It was the first time since 2017 that technology's P/E fell below the broader market's.
3. Investors eye catalysts
Investors are watching developments around Anthropic's potential IPO, upcoming results from CoreWeave, Nvidia and Dell, next week's Consumer Price Index report, interest rates and the US-Israeli war with Iran. Alphabet, Amazon and Meta are among large data-center spenders classified outside the technology sector.
