Live Markets: IGV at a crossroads as software stocks show signs of life
05/05/2026 13:54
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IGV AT A CROSSROADS AS SOFTWARE STOCKS SHOW SIGNS OF LIFE
After peaking late last year, software stocks have been under pressure, weighed down by fears over AI disruption. The group has been one of the weakest corners of tech overall. Lately, though, there are signs things might be changing. The iShares Expanded Tech‑Software Sector ETF IGV.P has started to perk up and now finds itself at an important technical crossroads.
For context, the S&P 500 Software & Services index .SPLRCIS is down about 16.8% so far this year. That figure is heavily skewed by Microsoft MSFT.O, which makes up more than half the index. IGV tells a broader story, since Microsoft accounts for less than 10% of the ETF.
IGV itself is also down more than 16% in 2026. But after tumbling more than 37% from its September 2025 record high to its April 10 low, the ETF has staged a notable rebound. As of Monday, it’s up roughly 20% from its April low.
What’s catching traders’ attention is the ETF’s recent leadership. In early May, IGV is up 5.5% month‑to‑date, well ahead of the S&P 500 tech sector’s .SPLRCT 1.3% gain, the PHLX Semiconductor Index’s .SOX 0.3% rise, and the broader S&P 500 .SPX, which is slightly lower.
On Monday, IGV climbed to an intraday high of $89.36, its best level since early February, before easing back to close at $88.41. The pullback matters, as the ETF is pressing against a key resistance line drawn from its October 2025 peak, now just below $90. A decisive breakout could help the recovery gain traction, with a gap near $96.94 further up, and the descending 200-day moving average is now just over $100.
A failure at the resistance line, followed by a break below the April 30 low of $82.18, could reopen the door to a test, or break, of the April lows.
Meanwhile, Palantir PLTR.O, one of IGV’s larger holdings, raised its full‑year revenue outlook and topped first‑quarter estimates on strong demand. Even so, the stock is down more than 1% in premarket trading.
(Terence Gabriel)
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EARLIER ON LIVE MARKETS:
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OIL SHOCK IS A CRISIS DELAYED, NOT AVERTED CLICK HERE
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IGNORING THE CONFLICT? CLICK HERE
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EUROPE BEFORE THE BELL: FUTURES SOFT AS TENSIONS RATCHET UP CLICK HERE
FREEDOM? WHAT FREEDOM? CLICK HERE
IGV05052026 https://fingfx.thomsonreuters.com/gfx/buzz/myvmywoezvr/image-1777976829023.png
(Terence Gabriel is a Reuters market analyst. The views expressed are his own)