Software stocks have surged on renewed optimism about the tech sector's resilience, with the iShares Expanded Tech-Software ETF (IGV) rising 35% from its April lows.
The rally, which accelerated with a 5% gain on Friday, reflects a broader shift in sentiment following a period of significant volatility.
Traders are now positioning for further gains, betting that the sector's fundamentals are stabilizing.
The market's enthusiasm is evident in the ETF's performance, which has outpaced broader indices.
This momentum follows a challenging period for software firms, with many grappling with the so-called 'SaaS-pocalypse' that saw valuations and investor confidence wane.
However, recent developments suggest a reversal in fortune, with companies regaining traction in key markets.