Software stocks rebound strongly on AI-driven growth, led by Snowflake and Okta's record gains.

Software stocks surged this week, fueled by strong earnings from Snowflake and Okta, which posted their best trading days ever. Despite concerns that AI might disrupt the software industry, these companies are benefiting from AI integration, with Snowflake securing a $6 billion cloud deal with Amazon and raising its guidance. Okta also saw a 30% jump, driven by increased demand for identity security amid AI advancements. This rally helped the iShares Expanded Tech-Software ETF achieve its best monthly gain since 2001, signaling renewed investor confidence in software firms adapting to AI trends.