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Weekly Market Directions

Market demands answers

US software stocks declined about 20% YTD as on 4 Feb, due to concerns that advancement in AI would impact businesses of some companies.

Line chart comparing volatility in the US software sector (pink), the S&P 500 (light blue) and a Magn. 7 index (dark blue) from January 2025 to 4 February 2026, indices rebased to 100; highlights an April 2025 trough, recovery through October 2025 and a steep decline in software volatility early 2026, annotated with source Amundi Investment Institute and Bloomberg.

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