LIVE MARKETS — Tech's lead over banks faces another test
US equity index futures mixed; Dow futures rally, S&P 500 slip, Nasdaq 100 fall September NFIB Business Optimism 97.9 vs 98.7 prior Euro STOXX 600 index up ~0.3% Dollar falls; US crude down >1%; gold, bitcoin edge up US 10-year Treasury yield falls to ~5.19% Welcome to the home for real-time coverage of markets brought to you reporters. You can share your thoughts with us at Tech's Lead Over Banks Faces Another Test There's an old Wall Street saying: "Banks are never an investment, always a trade." A look at the ratio between the S&P 500 Technology Sector Index and the S&P 500 Banks Index helps explain why. Over the long run, tech has been the clear winner, and that remains true in 2026. The tech sector is up more than 28% this year, versus a 1.7% gain for big banks. By comparison, the broader S&P 500 has advanced 14%, while the S&P 500 Financials sector is up just 0.5%. Lately, however, the relationship has been anything but steady. The Tech/Banks ratio peaked at a record 12.41 on June 1 while testing a long-term resistance line dating back to the dot-com era. The failed breakout hinted that tech's leadership was vulnerable, and the ratio quickly tumbled to a late-July
19% Welcome to the home for real-time coverage of markets brought to you reporters. " A look at the ratio between the S&P 500 Technology Sector Index and the S&P 500 Banks Index helps explain why. Over the long run, tech has been the clear winner, and that remains true in 2026. 7% gain for big banks.
5%. Lately, however, the relationship has been anything but steady. 41 on June 1 while testing a long-term resistance line dating back to the dot-com era. 47.
Since then, tech has regained the upper hand. 7 by Monday’s close, ahead of a busy week of third-quarter bank earnings. 68. 00.
That line has contained tech's relative weakness versus banks for nearly eight years. 75. A bigger development may be unfolding beneath the surface. The ratio's long-term support and resistance lines continue to converge and are on track to meet around mid-2029, potentially setting up a major inflection point.
A decisive break above resistance would reinforce technology's long-term leadership, while a break below support would suggest banks are finally gaining the upper hand. Either way, the narrowing range points to the potential for a much larger trend to emerge. (Terence Gabriel) *** Earlier On Live Markets: An Old Market Panic, A Different Banking Sector Click Here These Names Could Surprise - To The Upside Or Downside - Jefferies Says Click Here Luxury's Long Game Click Here Ai Jitters, But The Stoxx Still Rises Click Here Europe Before The Bell: Steady-ish Click Here The Fragile Ai Trade Click Here TechvsBanks10132026 (Terence Gabriel is a Reuters market analyst.
The views expressed are his own)