Deutsche Bank noted that the correction in U.S. tech stocks may not be over yet, with their performance relative to the rest of the S&P 500 still having about 5 percentage points of downside to reach the bottom of their long-term trend channel.

Two weeks ago, the bank downgraded U.S. tech and large-cap growth stocks to "Neutral." In the two weeks since, tech stocks have fallen by about 7%, while the rest of the S&P 500 has risen by about 5%, a performance difference of 12 percentage points. Deutsche Bank data shows that despite the significant pullback in tech stocks, institutional positioning has not yet fallen to extremely low levels. Furthermore, about $30 billion flowed into tech funds over the past two weeks, though the latest trading day saw a net outflow of $1.5 billion. Deutsche Bank maintains its S&P 500 target price of 8000 points for 2026.