Story perspectives

AI lifts software sector to highest S&P level since 2025

By Drooid · Oct 6, 2026, 10:04 PM UTC · How we work

Summary

U.S. Software Soars

U.S. software companies lifted the S&P 500 software index to its highest level since November 2025.
Analysts said AI enabled firms such as Salesforce, ServiceNow and Accenture.
Palo Alto Networks, CrowdStrike and Fortinet hit all-time highs.
Palo Alto Networks was valued about $340 billion.
Expected 2026 earnings growth for the software sector rose to 20.6%, up from 13.8% in March.

Summary

Wall Street Profits Surge

Wall Street securities firms earned $45.9 billion pre-tax profit in H1 2026, 51.3% above 2025.
Comptroller Thomas DiNapoli projects 2026 securities profits could exceed $90 billion, a record.
Industry contributions added $7.8 billion to NYC budget and $26.3 billion to state revenue in FY 2025-26.
NYC securities employment reached 207,400 in 2025, the highest level since 2000.
AI venture-capital spending reached $407 billion in H1 2026, over 50% above 2025.

History

Historical Context

From 1995 to March 10 2000 the Nasdaq Composite surged about 400%, peaking at 5,048.62 as venture-backed internet firms flooded the market. The bubble’s burst drove stocks like Microsoft to lose roughly 60% of their value and prompted broader regulatory action, a legacy that shapes today’s global scrutiny of AI-driven tech valuations.

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U.S. Software Soars

U.S. software companies lifted the S&P 500 software index to its highest level since November 2025.
Analysts said AI enabled firms such as Salesforce, ServiceNow and Accenture.
Palo Alto Networks, CrowdStrike and Fortinet hit all-time highs.
Palo Alto Networks was valued about $340 billion.
Expected 2026 earnings growth for the software sector rose to 20.6%, up from 13.8% in March.

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