S&P 500 Tech Stocks Surpass 200-Day MA, Historical Data Points to 33.4% Gains

75% of S&P 500 tech shares close above 200-day moving average, ending a 219-day downturn. Historical precedents suggest potential returns of up to 33.4% over the next year.

Woofun AI data shows that 75% of stocks within the S&P 500 technology sector closed above their 200-day moving average last week. This milestone marks the first time this threshold has been reached since October 2024, concluding a prolonged downturn of 219 trading days. This period represents the ninth longest such decline on record, compared to the longest duration of 759 trading days which ended following the internet bubble burst on April 22, 2003. Historical records indicate that following similar extended downturns, the technology sector typically gains an average of 2.5% in the subsequent month, 7.3% over three months, 15.5% over six months, and up to 33.4% within 12 months.

Additionally, 69% of Nasdaq 100 constituents have now exceeded their 200-day moving average, nearing levels last seen in July 2025.

This shift in breadth indicators reflects a broadening of the rally beyond individual key stocks to a wider market segment. The sector had previously encountered pressures from memory chip sell-offs, leverage ETF liquidations, and concerns regarding AI capital expenditure.