With the development of a potential ceasefire in the Middle East reviving risk-on sentiment in the market, it’s worth considering where newly allocated funds will be invested. Looking back over the prior month, it’s clear that the information technology sector is at the forefront of investment attention. After underperforming the S&P 500 since late October, the Tech sector outperformed the index on a relative basis in March. That momentum shift is being driven by the fact that valuation levels have fallen to previous trough levels while the earnings revisions, the ultimate driver of price, have accelerated rapidly in 2026.
April 8, 2026
With the development of a potential ceasefire in the Middle East reviving risk-on sentiment in the market, it’s worth considering where newly allocated funds will be invested. Looking back over the prior month, it’s clear that the information technology sector is at the forefront of investment attention. After underperforming the S&P 500 since late October, the Tech sector outperformed the index on a relative basis in March. That momentum shift is being driven by the fact that valuation levels have fallen to previous trough levels while the earnings revisions, the ultimate driver of price, have accelerated rapidly in 2026.