Market UpdatesApr 16, 20262 Min

Software Stocks Surge On Wall Street: Oracle Powers Rally With Nearly 13% Gain

Software stocks on Wall Street bounced back on Monday, April 14, as hopes grew for a possible peace deal between the US and Iran. The sector had been under pressure recently over worries that artificial intelligence could disrupt business models.

Leading the charge was Oracle, which emerged as the top gainer in the S&P 500, surging more than 12 percent in one of its strongest sessions this year.

Oracle Leads Software Rally

Oracle led the rally in software stocks and ended the session with a gain of 12.69%.

With this rally, software stocks recovered some of their losses for the year and posted their best trading session since September 2025.

Other noteworthy movers were:

• ServiceNow gained 7.30%
• HubSpot rose 6.77%
• Workday advanced 6.60%
• Adobe jumped 6.55%
• Salesforce rallied 4.76%

Even cybersecurity stocks were part of the rally:

• Tenable added 8.54%
• SentinelOne gained 7.12%
• CrowdStrike rose 6.13%

AI Disruption Fears Continue To Weigh On Sector

Stocks in software companies have been experiencing a lot of selling pressure this year because of concerns over disruption caused by artificial intelligence.

The sector has been in selloff mode amid fears that new AI tools from companies such as Anthropic and OpenAI could challenge established software business models. There are also concerns that rising cyber risks could impact cybersecurity companies.

With the advent of advanced artificial intelligence systems, investors worry that users will be able to create software apps within minutes, eroding profit margins.

Though tech executives have described such fears as “overblown,” it has done little to stop the decline.

Year-To-Date Pressure On Software Firms

Despite Monday’s gains, many major software stocks remain in negative territory for the year.

• Atlassian has been among the biggest losers, down more than 60%
• HubSpot has lost nearly half its market value
• Oracle is down a fifth of its value
• ServiceNow has fallen more than 40%

Some companies, including Atlassian, have also reduced headcount to support investment in AI initiatives.

Markets Open Week Higher

Monday’s rally in software stocks helped major US indices start the week on a positive note. The S&P 500 is up 0.6% year-to-date. The Dow Jones Industrial Average has gained 0.6%, moving into positive territory for the year. The Nasdaq Composite Index rose 1.2%, marking its largest nine-day point gain on record and its longest winning streak since 2023.

Disclaimer: This content is for educational purposes only and does not constitute investment advice, personal recommendations, or a solicitation to buy or sell financial instruments. All investments involve risk, including potential loss of capital. Investors should consult professional financial advisors and consider their personal circumstances before making any investment decision.