US Equities: Cross-border tech demand stays firm – BNY

BNY’s Geoff Yu highlights that US equity markets have stabilized despite recent volatility, with the Tech sector still leading allocations. BNY iFlow data show global IT holdings above their 12‑month average and a persistent cross-border “premium,” as international investors maintain strong conviction in US tech exposure even while discussing diversification and emerging external themes.

Global investors keep faith in US tech

"Despite the volatility seen in recent weeks, U.S. equity markets have broadly managed to steady performance, and the Tech sector continues to lead allocations."

"Our data show that global allocations in the broader IT sector (GICS Level 1) remain well below 2025 highs but sit about 10% above the rolling 12-month average, which is already a high base."

"Although allocations are not as strong as during the “U.S. exceptionalism” period from 2023 to 2024, the cross-border “premium” remains intact."

"However, despite some turbulence in trans-Atlantic relations, there is very little scope for decoupling, and U.S. investments will remain a crucial part of European strategic asset allocation."

"As long as earnings continue to deliver, “U.S. exceptionalism” in tech-related investments is unlikely to fade."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)