US software stocks to keep rebounding, says Goldman Sachs prime brokerage note


Futures-options traders work on the floor at the New York Stock Exchange's NYSE American (AMEX) in New York City, U.S., February 20, 2026. REUTERS/Brendan McDermid

LONDON, ⁠Feb 26 (Reuters) - Goldman Sachs prime brokerage ⁠said in a note that the recent ‌bounce in software and IT services stocks may continue, even though this week, hedge funds were as short ​as they have ever been ⁠on the sector.

A ⁠short position expects an asset price to fall.

The ⁠S&P 500 ‌software and services index <.SPLRCIS> has tumbled over 18% this year so ⁠far, shedding more than $1.2 trillion in market ​value, according ‌to LSEG data. But this week, stocks ⁠in this ​index recovered and the index rose over 4%

Key findings of the Goldman report:

(Reporting by Nell Mackenzie; editing by Dhara Ranasinghe)

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