S&P 500 Bulls Ride Software Comeback Wave to 8,000 Target
Investors have rotated from AI hardware stocks into beaten-down enterprise software names like Salesforce, ServiceNow, and Workday. Morningstar's Dave Sekera believes this rotation could push the S&P 500 to 8,000 within weeks.
The market has rapidly recovered its July losses in just four trading sessions, with the index reaching new highs. Sekera attributes this growth to a shift away from AI hardware stocks, such as Sandisk and Micron, which investors are questioning for their long-term returns on massive investments.
Workday's reported takeover talks with Silver Lake have boosted the sector, highlighting the company's 'strong moat' in its market. This has lifted Salesforce, Adobe, ServiceNow, and SAP, with investors looking for ways to play AI beyond chip trade.