Wall Street Strategists Dismiss Tech Selloff, Raise S&P 500 Targets

Major Wall Street banks are pushing back against Friday's sharp tech-led selloff, with Morgan Stanley and Citigroup framing the Nasdaq 100's 4.8% decline — and the Philadelphia Semiconductor Index's biggest drop since 2020 — as a healthy correction after a nine-week AI-driven rally. Citigroup raised its S&P 500 year-end target to 8,100 from 7,700, implying 9.7% upside from Friday's close, while Morgan Stanley held firm at 8,000. UBS echoed the bullish tone, pointing to resilient AI spending fundamentals and arguing markets are overestimating central bank tightening. Nasdaq futures rose 0.5% premarket, with chipmakers Micron and Marvell up 4.5% and 7.0% respectively, suggesting early stabilization.