US technology stocks are under “significant pressure” as investor positioning remains extended on the bullish side despite the past month’s selloff, according to Citigroup Inc. strategists.

The team led by Chris Montagu said there’s still about $22.5 billion worth of long positions on futures tracking the tech-heavy Nasdaq 100 Index.

“On any negative economic data, there will be significant pressure on these long positions,” which face an average loss of 7.6%, Montagu wrote in a note. “That, in turn, could amplify any down moves from here in the near term.”

Tech stocks have been at the forefront of the rout in global financial markets on worries about high valuations at a time when the US economy is slowing down. While the Nasdaq 100 has recouped all its losses from early last week, it remains about 10% below its July record high.

Investors are now awaiting a slate of economic data, including on inflation, for clues on potential interest-rate cuts by the Federal Reserve.

Meanwhile, a survey by Bank of America Corp. showed investor optimism on the biggest technology companies or a soft economic landing is still running high. Large-cap growth stocks — dominated by tech — were viewed as the likely leaders of a new US equity bull market, although conviction eased to 36% from 47% in July.

This article was provided by Bloomberg News.