Software stocks rebound strongly, led by cybersecurity gains and rising options activity.

Software stocks have surged back after a significant AI-driven sell-off last year, with the iShares Expanded Tech-Software Sector ETF (IGV) now in positive territory for 2026. Cybersecurity stocks, including CrowdStrike and Palo Alto Networks, are leading the rally, driven by increased demand for security amid AI growth. Options traders are actively buying calls, especially in software ETFs and Oracle, signaling bullish sentiment ahead of major upcoming earnings reports. This rebound highlights renewed investor confidence in the tech-software sector despite recent volatility.