Wells Fargo Upgraded S&P 500 Tech Stocks. Why the Strategists Are Downgrading Energy.

Strategists at the Wells Fargo Investment Institute upgraded the S&P 500 information technology sector and downgraded the energy sector in a note on Monday. The team of strategists upgraded the tech sector to a “favorable” rating from “neutral” and downgraded energy from “neutral” to “unfavorable.” The strategists note that concerns about valuations, aggressive spending, and possible AI disruption of software stocks have led to the tech sector’s underperformance of the broader S&P 500 by about 9% from when they downgraded it to neutral on Oct. 30 through March 31.