Wall Street’s recent rebound has been mainly powered by technology stocks, with institutional investors leading the charge as the most aggressive net buyers since record-keeping began in 2008.
Last week alone, institutions snapped up a net $3 billion in tech stocks, according to data from Bank of America.
“As a share of total market cap, this ranks in the 98th percentile historically,” wrote The Kobeissi Letter, a markets commentator.
In total, U.S. tech stocks attracted $4.4 billion in net inflows during the week, more than four times the combined inflows into all other sectors, the commentator added.
US technology stocks posted $4.4 billion in net inflows last week, the most since June 2024.
undefined The Kobeissi Letter (@KobeissiLetter) June 25, 2025
This is 4 times more than all other sectors combined.
Over the last 4 weeks, net inflows have averaged $1.5 billion per week.
Meanwhile, institutional net buying of tech stocks hit ~$3… pic.twitter.com/cFk3YQ7Tc4
Technology has long held an outsized influence on the U.S. stock market. In 2024, the tech and communication services sectors accounted for 56.5% of the S&P 500’s total returns, according to Statista.
Without tech and communication services, the S&P 500 would have returned just 11% last year, less than half its actual 25% gain.
However, even tech leadership is highly concentrated. Morningstar reports that just eight companies — Nvidia, Apple, Meta Platforms, Tesla, Alphabet, Microsoft, Amazon, and Broadcom — were responsible for over half the gains in the Morningstar U.S. Market Index last year.
With tech stocks doing much of the heavy lifting, the S&P 500 Index, Dow Jones Industrial Average, and Nasdaq Composite Index are back in positive territory for the year, a feat that would have seemed highly improbable just a few months ago.
New record highs within reach
The S&P 500 closed Thursday less than 1% below its all-time high, a sign of the market’s resilience despite lingering concerns from the Trump-era tariff wars.
The rally has reignited debate over valuations, with the S&P 500’s price-to-earnings back above the five-year and ten-year moving averages.
Still, as DataTrek co-founder Nicholas Colas pointed out, “Price earnings multiples are a function of investor confidence, which is a constantly moving target and has very little in the way of natural limits on either the upside or downside.”
Investor sentiment also got a boost this week from Federal Reserve Chair Jerome Powell, who told Congress that “inflation’s in a really good place,” even with some price pressures expected in the coming months.
While Powell ruled out near-term rate cuts, he also pushed back against fears of an imminent recession.
Currently, futures markets say there’s a more than 90% chance that the Fed will resume rate cuts at its September meeting.
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