Software Stocks Climb Over 1% as IGV Extends Rebound to 20% From April Lows

2 articles · Updated · CNBC · May 19

IGV rose more than 1% Monday to its highest level since January, pushing the software ETF more than 20% above its April low even as chip shares dragged on the Nasdaq-100.
28,000 put sales on IGV and a $32 million purchase of 7,000 in-the-money Microsoft August 390 calls signaled traders are betting the sector's worst stretch may be over.
ServiceNow jumped 9% after Bank of America reinstated coverage with a buy rating and a $130 target; more than 85,000 calls traded, while Salesforce still gained 3.5% with calls beating puts 3-to-1.
Cybersecurity remains the standout pocket: the HACK ETF is up 16% since April 20, including a 3% gain Monday, as CrowdStrike and Palo Alto Networks trade at record highs.
The rebound follows months of 2026 pressure from fears that AI agents could displace software vendors, leaving IGV still down 12% for the year despite the recent rally.

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