Tech Sector Valuations Fall Below S&P 500 Following Sharp Weekly Selloff

Major equity benchmarks posted their fourth straight weekly drop after an intense tech retreat wiped out recent gains, leaving the technology sector cheaper than the wider S&P 500 for the first time since 2017. While the equal-weight S&P 500 reached an all-time peak during the week and ended relatively flat, the market-cap weighted S&P 500 and the Nasdaq Composite each fell around 3% across the five-day stretch.

Following the pullback, technology shares in the S&P 500 traded at roughly 17 times projected earnings, dropping beneath the broader index's multiple of 18 times. This valuation reset contrasts sharply with October 2025, when technology equities were commanding roughly 32 times forward earnings. Friday delivered a partial recovery for chipmakers and hardware providers, though major indexes still suffered meaningful net losses over the week.