Software Stocks Rally Four Sessions, ETF Rises 1.1% and CrowdStrike Climbs 2.5%
U.S. software stocks rallied for a fourth session, driving the iShares Expanded Tech-Software ETF up 1.1% to its highest level since January. Cybersecurity companies such as CrowdStrike gained about 1.2%–2.5% as investors reevaluated AI disruption risks against potential productivity gains.
1. Sector Extends Winning Streak
U.S. software stocks have now gained in four consecutive sessions, with the iShares Expanded Tech-Software ETF rising 1.1% to its highest level since January. The advance follows heavy selling earlier in the year over fears that AI innovation could erode traditional software business models.
2. Cybersecurity Stocks Outperform
Broad software gains included cybersecurity firms, with CrowdStrike, Okta, SailPoint and Zscaler each climbing between 1.2% and 2.5%. Investors appear selectively rewarding companies seen as either insulated from AI threats or poised to benefit from new AI-driven security offerings.
3. AI Risk Versus Opportunity
The recent rally reflects a shift in sentiment as chipmakers cool off from recent record highs, prompting investors to distinguish between software names at genuine risk of AI disruption and those that could capture productivity gains, drive new products and strengthen customer demand.