Strong Index Returns Mask Software Sector Rotation

Large-cap indexes delivered solid returns this week, supported by falling interest rates and continued strength in a small number of leadership stocks. However, a closer look reveals a key sector rotation underway, with software emerging as a notable area of relative weakness. While a few large-cap names continue to perform well, an increasing number of prior leaders are showing mounting losses. This report reviews recent index performance, the potential influence of declining rates, and the deteriorating leadership trends within the software sector.

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