In early February 2026, the US technology sector recorded the first notable capital outflows this year.
According to EPFR, technology funds lost about $2–2.3 billion over the week, including $830 million from the IT sector ETF.
This is happening against the backdrop of recent Nasdaq highs and growing doubts about the quick return on investment in AI.
🔍 Why are investors exiting technology?
Big Tech companies plan to spend up to $600 billion on AI infrastructure by 2026.
The market is transitioning to 'show me the money' mode — investors want to see profits, not just rising costs.
Against this backdrop, software stocks have fallen about 7.5% over the week.
🔄 This is not a flight — it's a rotation
Capital is being redistributed: ✅ into energy (XLE)
✅ in industry (XLI)
✅ in commodity sectors
✅ in European and Asian stocks
U.S. equity funds remain positive overall in inflows.
🏦 Institutions and retail act differently
Institutions:
— reducing risk
— taking profits
— transitioning to value and cyclical assets
Retail:
— buying the dips
— increasing positions in technology ETFs (e.g., IGV)
There is a struggle between the rotation of 'smart money' and the buy-the-dip strategy.
🪙 What does this mean for crypto?
A decrease in inflows into technology may:
strengthen the flow of liquidity into alternative risk assets
support trading activity in crypto
increase the role of stablecoins
The market is becoming more selective — capital is going into quality, not hype.
📌 Conclusion
The market is neither bullish nor bearish — it is strategic.
Question: Is this a pause before a new tech rally?
or the beginning of a longer cooling period for Nasdaq?
Image description:
The image shows the rotation of capital from the U.S. technology sector into cyclical industries and alternative assets.
On the left — a declining chart symbolizing the outflow of funds from tech stocks and IT sector ETFs. A broken microchip and leaking dollar bills reflect the decreasing interest of investors in overheated AI and software companies.
On the right — growth charts, oil rigs, and industrial infrastructure symbolizing the inflow of capital into energy, industry, and commodity sectors.
At the bottom of the image is Bitcoin as an indicator of an alternative risk asset, into which liquidity may partially flow against the backdrop of weakening interest in technology.
The composition visually contrasts:
decline of technology
growth of cyclical sectors
uncertainty and strategic phase of the market
The image illustrates the current market transition from speculative growth to a more selective and defensive investment strategy.
#USTechFundFlows #Markets #crypto #AI #Nasdaq
