Tech-Led Rally Drives S&P 500 Within 1–2% of Record Highs, Deutsche Bank Says

Published: 2026-02-26 09:09:30 |

Deutsche Bank analysis finds a broad-based rebound in technology stocks has pushed the S&P 500 within roughly 1–2% of its all-time highs. The rebound spans semiconductors, software and cloud computing, driven by stronger-than-expected corporate earnings, clearer regulatory outlooks and renewed AI and data-center investment. Institutional flows into tech ETFs and futures have reached multi-month highs, trading volumes have supported the move, and the market risk premium has compressed slightly — signs of improved risk appetite. Deutsche Bank notes the rally’s sustainability depends on sector breadth: financials, industrials and other sectors must contribute to avoid overconcentration in tech. Key near-term tests include upcoming inflation and employment data and Q1 earnings. Risks cited include geopolitical tensions and elevated valuations in parts of the market. Primary keywords: S&P 500, tech rebound, Deutsche Bank, technology stocks, market breadth.

Bullish

A strong, broad-based tech rebound that narrows the gap to all-time highs and is backed by institutional buying and rising volumes is typically bullish for risk assets. Technology leadership often precedes broader market rallies because tech firms drive earnings growth and market sentiment — especially when flows into tech ETFs and futures increase and risk premia compress, as Deutsche Bank notes. Short-term volatility remains possible around macro prints (inflation, jobs) and company earnings, and concentrated gains in tech increase tail-risk if rotation reverses. Historically (e.g., post-2020/2021 tech-led rallies), sustained institutional participation and sector breadth determined whether gains extended to the wider market. If financials, industrials and consumer sectors begin to participate, the bullish case strengthens for both short-term momentum and medium-term trend continuation; if breadth narrows, expect choppy trading and higher downside risk on a sell-off in megacap tech names.