Deutsche Bank Upgrades US Technology Following Extended Market Selloff

By EC Assets · Published 2 November 2026

Deutsche Bank has upgraded U.S. technology equities, stating that the selloff across the sector has gone too far. The rating change reflects the bank's assessment that recent price declines across the technology industry have become excessive. The decision follows a turbulent period in late October, when technology stocks caught the cold that for months has been a persistent drag on the corporate bond market. The downturn in technology shares took hold after months of prolonged weakness in corporate debt. Corporate bond markets had contended with sustained headwinds over an extended period, and those fixed income pressures eventually spread into technology equities during late October. In evaluating the resulting drop in equity valuations, Deutsche Bank determined that the market retreat had moved past justified bounds, prompting the bank to upgrade the U.S. technology sector. The revised stance on technology shares coincides with several company-specific rating adjustments at Deutsche Bank. In the satellite communications sector, the bank upgraded AST SpaceMobile from hold to buy while maintaining its price target of $93 per share. Deutsche Bank identified AST SpaceMobile, a company pioneering space-based mobile broadband, as a buy on weakness because positive catalysts are lining up for the business. Deutsche Bank also adjusted its recommendations in European healthcare and the lodging industry. In pharmaceuticals, the bank upgraded Roche to buy from hold and raised its price target on the stock to CHF500 from CHF340. The bank decided to upgrade Roche mainly because of positive physician feedback on the cancer drug giredestrant in its own oncology survey. In consumer equities, Deutsche Bank upgraded Hilton to buy as market expectations reset for the company. Broader market conditions reflect tight linkages between equity valuations, fixed income trends, and political developments. Investor stock portfolios increasingly hinge on the bond market and the midterm elections, especially as corporate bond market strains spilled over into late-October technology equities. At the same time, central bank policy remains in focus, with the Bank of England poised to raise interest rates, though policymakers may push back against market bets calling for further rate hikes. In international banking, a $5.5 billion bank takeover involving Canadian and Indian entities faces scrutiny after attracting opposition from workers and politicians. In equity markets, investor portfolios continue to hinge on incoming signals from the corporate bond market and the midterm elections, alongside upcoming monetary policy decisions as the Bank of England prepares to raise benchmark rates while potentially pushing back on bets for more. This article is intended for informational purposes only. It does not constitute investment advice.