Wells Fargo downgrades US technology sector to equal weight

Wells Fargo has pulled back its enthusiasm for the US technology sector, downgrading it to equal weight from overweight. The move signals that the bank sees current valuations as stretched enough to warrant trimming exposure, even if the underlying growth story for tech remains intact. What changed, and why now The core concern is valuation. The bank had previously upgraded the information technology sector to a favorable rating in April 2025, during a period of market turbulence tied to tariff conditions. By October 2025, however, Wells Fargo flipped back to neutral, citing high valuations even as expectations for AI-related spending in 2026 remained robust. Wells Fargo’s move to equal weight does not mean the bank has turned bearish on technology. Their long-term outlook for the sector, particularly around AI infrastructure and software spending, reportedly remains constructive. Equal weight simply means they are no longer recommending that investors hold more tech than the benchmark suggests. The Accenture downgrade adds texture Alongside the broader sector positioning, Wells Fargo also downgraded Accenture to equal weight from overweight, setting a price target of $194. That ca...