US equity markets have stabilized after recent volatility. The Tech sector still draws the biggest allocations. BNY iFlow data show that cross-border demand for US tech remains strong.
Global allocations to the broader IT sector (GICS Level 1) are below the 2025 highs. They are about 10% above the rolling 12-month average, which is already high.
Cross Border Tech Demand Remains Firm
Allocations are lower than during the “US exceptionalism” period of 2023 to 2024. Even so, a cross-border “premium” still exists.
The text points to turbulence in trans-Atlantic relations and says there is limited room for decoupling. It also ties ongoing tech outperformance to strong earnings delivery.
The article says it was created with help from an AI tool and reviewed by an editor.
US equity markets look steady, and technology remains the main destination for global capital. This matches the trend seen through 2025, when international investors kept their confidence in US tech. This steady cross-border demand continues to support the sector.
Options Strategies For A Lower Volatility Tape
The Nasdaq 100 is up about 8% this year after a strong January earnings season. Implied volatility has fallen. The VIX is near 17, well below recent highs, which can make options cheaper. This may favor strategies like buying call options on major tech ETFs to benefit from more upside.
The ongoing “premium” for US tech exposure also suggests another approach: selling cash-secured puts on leading semiconductor or software names. This can generate income while setting a lower potential entry price for stocks you want to own long term. It also fits the view that any pullbacks may attract buying from overseas investors.
The next key test will be the Q1 2026 earnings season, which begins in about two months. Strong Q4 2025 results supported the bullish positioning that built late last year. Because of this, traders may consider longer-dated positions—such as bull call spreads that expire after April—to capture any upside from positive earnings surprises.
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