Wall Street Is Optimistic That Worst of Software Wipeout Is Over

The S&P 500 software index is coming off its best week since May. The widely followed iShares Expanded Tech-Software Sector ETF, ticker IGV, just posted its strongest week in 11 months and is up 14% since Feb. 23, when Citrini Research rattled the market with its dystopian vision of an AI future. A Goldman Sachs software basket is trading for 22 times forward earnings, compared with 21 for the S&P 500 Index. Over the past decade, the basket has traded at an average multiple of 52, while the S&P 500’s average is 19.