Momentum, leveraged trading keep software stocks on roller coaster

Aug 26 : U.S. software shares have been on a roller coaster and more wild rides likely lie ahead, thanks to AI-driven uncertainty and the rise of trading strategies that investors say are accentuating the swings in popular technology sectors. After hitting a record high on October 28, the S&P 500 software and services index lost more than 33 per cent of its value by April 10, with selling accelerating following a January product release by Anthropic that some portfolio managers worried would make many of these firms' products obsolete. The index then bounced 33 per cent during a mostly solid first-quarter earnings season, before selling off again and then partly recovering once more during a largely healthy second-quarter earnings season. The index is down more than 3 per cent for the year