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Chart of the WeekMay 27, 2026

Chart Of the Week – The Technology Sector's Price and Valuation Have Diverged

This chart tracks how far the S&P 500 Information Technology Sector's price and forward P/E ratio have each fallen from their respective 52-week highs.

Chart Of the Week – The Technology Sector's Price and Valuation Have Diverged

This chart tracks how far the S&P 500 Information Technology Sector's price and forward P/E ratio have each fallen from their respective 52-week highs.


As of May 25, 2026, the 52-week drawdown in price stands at -0.7%, while the 52-week drawdown in forward P/E sits at -22.3%. The spread between the two lines shows the degree to which price and valuations have diverged.


The spread between these two lines is meaningful. The drawdown in forward P/E remains well below that of price, suggesting investors are paying a lower multiple today while prices are sitting near 52-week highs.

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