Wall Street Is Optimistic That Worst of Software Wipeout Is Over

After months of heavy selling on fears of artificial-intelligence disruption, software stocks appear to have found a bottom — at least for now.

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 13% since Feb. 23, when Citrini Research rattled the market with its dystopian vision of an AI future. The fund was up more than 2% on Wednesday.