Tech stocks are drawing money at a pace never seen before. Weekly flows into tech funds hit roughly $19 billion last week, the highest single-week reading since at least 2017, according to data cited by Deutsche Bank. The bank counted $15.6 billion in tech fund inflows alone. BofA data shows 2026 is on track for about $152 billion in annual tech inflows, another record.
Why the inflows matter
The surge comes as the Nasdaq Composite climbs for three consecutive sessions, testing a descending trendline that has capped prices since June. The index surged 21.4% in the second quarter, its best quarter since 2020, but then pulled back. The Magnificent Seven ETF fell more than 8% from its early June record, and the Philadelphia Semiconductor Index lost over 19%.
Mark Hackett, chief market strategist at Nationwide, called the pullback in megacap tech “incredibly healthy” given the market’s flat performance during that period. Deutsche Bank notes aggregate equity exposure remains slightly below neutral, with discretionary investors still underweight. That suggests there’s room for more buying if sentiment shifts.
The resistance level in focus
The Nasdaq defended the 0.382 Fibonacci retracement at 24,707 as support and is now testing a supply zone between 26,000 and 26,400. The Relative Strength Index sits around 53, still neutral, and volume remains moderate. A break above the supply zone could open the door to further gains, but the index has failed at this level before.
Weakness persists in memory names such as Micron and SanDisk, indicating the rebound is uneven. Not all tech stocks are participating equally, and that divergence could limit the rally’s durability.
What’s next for the Nasdaq
This week brings a heavy earnings slate and fresh US labor market data, both of which could tip the index one way or the other. Strong earnings from major tech firms might push the Nasdaq through resistance, while weak labor data could reignite recession fears and stall the recovery.
For now, the inflows suggest investors are betting on tech despite the recent pullback. But with the RSI neutral and volume moderate, the market is waiting for a catalyst. The next few days will show whether the record cash pile can push the Nasdaq past its ceiling.
