Nineteen billion dollars poured into technology stock funds during one week. That's the highest single-week inflow on record going back to at least 2017. The four-week moving average has turned nearly vertical, marking the strongest five-week stretch in the entire history of fund flow tracking. After a brutal July that sent the Magnificent Seven down over 8% and semiconductors down 19%, investors are rotating back into big tech names with unusual aggression.

The timing catches strategists watching the same signals. Deutsche Bank's team, led by Parag Thatte, counted $15.6 billion in tech fund inflows for just the previous week and argues the rotation is only beginning. They see hyperscalers, the massive cloud and AI infrastructure operators, as offering the best risk-reward available right now. Relative to the S&P 500, these names are trading near their cheapest levels in three years.

Positioning Still Has Room to Run Higher

The pullback across tech stocks looks less like a top and more like a reset for most market watchers. Mark Hackett, chief market strategist at Nationwide, called the aggressive selloff in the Magnificent Seven "incredibly healthy" given that the broader market stayed relatively flat during that period. Underneath the surface, positioning data reveals plenty of dry powder left on the sidelines. Aggregate equity exposure remains slightly below neutral, with discretionary investors still underweight tech. Bank of America's numbers show 2026 is tracking toward roughly $152 billion in annual tech inflows, which would be a record.

Charts Align with the Money Flow

The Nasdaq Composite has now climbed for three consecutive trading sessions and is pressing against a trendline that has capped it since June. The daily chart shows the index defended the 0.382 Fibonacci retracement at 24,707 as support and was trading near 25,790 at the time of reporting, up 1.6% for the day. Fund flows and chart structure are pointing the same direction, though key resistance levels remain unbroken. If the Nasdaq can clear through that June trendline, it would signal the downtrend has finally given way to something broader and more sustained.

This material is provided for informational purposes only and should not be construed as financial advice or investment recommendation.