Wall Street strategies to play the software sell-off

Tech stocks were slammed this week as new fears of AI disruption swept Wall Street, dragging the broader market after a software-led sell-off. The tech-heavy Nasdaq Composite was down 2% for the week, despite Friday's comeback, while the iShares Expanded Tech-Software Sector ETF fell more than 12%.

Some analysts see the decline as a rotation into "old economy" plays. Piper Sandler noted the bull market remains intact but is no longer led by popular tech and growth names; instead, momentum is emerging in cyclical and value sectors such as energy, industrials, materials, staples, and banks.