Crédit Mutuel AM: Divergences between subsectors mark the start of the year

Crédit Mutuel AM: Divergences between subsectors mark the start of the year

February 20, 2026

Technology

By François Rimeu, Senior Strategist, Crédit Mutuel Asset Management

  • Software: Are concerns about AI overstated?
  • Are all software companies really on the losing side?

The start of the year has seen the technology sector in equity markets show striking contrast, revealing diverging trajectories across sub‑segments, both in the United States and in Europe.

In the U.S., while the S&P 500 has gained +1.4% year‑to‑date (as of 11/02), the technology sector as a whole is down ‑1.9%. This average, however, masks significant disparities: semiconductors are up +6.7%, hardware has also risen +5.4%, whereas software has seen a pronounced correction with a decline of ‑18.3%.

A similar dynamic is playing out in Europe, where the software sub‑sector is down ‑18.8%, which contrasts with the broader technology sector, which remains slightly positive at +0.4%.

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