Jakub Porzycki | Nurphoto | Getty Images
The relief rally comes after tech names suffered a bruising start to 2026. Tech stocks were hit particularly hard last month amid a broader market selloff driven by concerns about the Iran war.
Software stocks have crumbled over the past few months on fears that artificial intelligence could disrupt software business models.
The wipeout coincided with shares of Big Tech companies coming under pressure in February as investors questioned when they’ll start to see a return on their massive AI spending plans.
Microsoft shares have been battered more than most tech names due to worries over its AI strategy. The stock slumped 23% in the first quarter, a steeper drop than any of its tech peers or the Nasdaq, which fell 7% over that stretch.
