Time to buy tech?

April 13, 2026

Time to Read: 3 mins

Technology valuations have meaningfully declined over the past year, but the sector continues to stand out for its strong earnings growth and relative resilience. While near-term uncertainty remains, tech still appears well positioned as a key driver of broader market growth.

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Is it time to buy tech?

The sector has broadly declined over the last six months, driving valuations to multi-year lows that are nearly in line with those of the S&P 500. The price-to-earnings ratio of the technology sector has fallen from 32x to a low of 20x, and now stands at 22x.

At the same time, the technology sector continues to post some of the strongest earnings growth among all S&P 500 sectors. The sector is expected to deliver 37% earnings growth in 2026 compared to18% for the entire index. Outside of software, which has sold off on concerns about artificial intelligence, tech stocks have remained resilient. The sector has even outperformed since the war with Iran began and is now 4.4% higher compared to the S&P 500’s 0.1%.

While further downside in technology is possible, valuations have adjusted significantly, suggesting the worst of the sell-off may be behind us. The near-term outlook is clouded by geopolitics, but we don’t consider tech much riskier than the broader market, and we expect the sector will remain a primary source of growth.

Chart of the week | Macroeconomic

Job market hanging in there

Recent jobless claims data point to a resilient U.S. labor market, with both initial and continuing claims remaining low and signaling that unemployment is still contained. Although job growth has softened and remains subdued, March’s job growth of 178,000, the highest since 2024, is encouraging. Our constructive outlook still holds despite continued uncertainty related to the war in the Middle East.

Chart of the week | Macroeconomic

Markets since iran conflict

Markets are reacting to the Middle East conflict with sharp moves across asset classes, signaling broad risk repricing and shifting safe haven behavior. While volatility is elevated, fundamentals like earnings growth continue to support our constructive outlook.

Chart of the week | Macroeconomic

Signals from spreads

Credit spreads have risen yet remain historically low, reinforcing our view that the oil shock is likely temporary — not a driver of long-term growth concerns.

Chart of the week | Macroeconomic

Dollar strength: what does it mean for markets?

Geopolitical tensions have lifted oil prices, sent U.S. stocks slightly lower and driven flows into the safety of the U.S. dollar, which has strengthened versus peers. While a weaker dollar previously supported international equity outperformance, dollar stabilization now suggests that tailwind is fading, underscoring the importance of diversification across regions and asset classes.