Are Software Stocks In Store for a Rebound?

January 16, 2026 – 04:42 PM EST

In recent trading sessions, a significant divide has emerged between semiconductor and software stocks. While semiconductor giants like Micron, Broadcom, and AMD continue to thrive—partly due to increased demand from AI-data center expansion—major software companies are struggling. Names like Applovin, Palantir, and Workday have found themselves among the S&P 500’s worst performers.

The Semiconductor Surge

The PHLX Semiconductor Index saw more than a 1% rise recently, fueled by optimism in the chip industry. Companies in this sector have benefited from the booming AI market, which has led to a vital increase in demand for semiconductors. Investors are buoyed by expectations of continued growth, making these stocks an attractive proposition.

Software Under Pressure

In contrast, the software sector faces unique challenges. Many investors are concerned about the potential disruption posed by AI-native competitors that may outpace traditional software offerings. This sentiment has contributed to the underperformance of several key players in the software space.

A Glimmer of Hope: Technical Analysis

Despite the current climate, Adam Turnquist, Chief Technical Strategist at LPL Financial, suggests that a reversal of fortunes for software stocks might be on the horizon. In his analysis, he points out that the software-to-semiconductor valuation ratio is significantly oversold and nearing a crucial support zone that has been in play since the early 2000s. Historical performance data indicates that the depth of the decline resembles past inflection points over the last 15 years.

Potential for Recovery

Turnquist believes that while a sustained upward trend may not yet be confirmed, the conditions for a rebound in software relative performance are forming. His optimistic standpoint hinges on technical levels that could signal an imminent recovery phase for beleaguered software stocks.

PNC Financial Stock Hits 4-Year High

January 16, 2026 – 03:26 PM EST

Shares of PNC Financial recently surged to a four-year high after the company reported better-than-expected quarterly earnings and announced plans for share buybacks. The Pittsburgh-based bank revealed a fourth-quarter net income of $2.03 billion, corresponding to $4.88 per diluted share—a substantial increase from analysts’ expectations of $4.23 per share.

Financial Performance Insights

PNC’s net interest income, a pivotal metric for banks, rose by 2% to reach $3.73 billion. CEO Bill Demchak attributed this success to effective management across all business sectors, mentioning impressive revenue growth and controlled expenses. The bank’s commitment to increasing share repurchases—from $400 million to a forecasted $600–$700 million—also speaks to its confidence going into 2026.

Strategic Acquisitions

Another noteworthy development for PNC is its acquisition of FirstBank, completed on January 5. This strategic move brought in substantial assets, loans, and deposits, which the bank sees as integral to its expanded growth prospects.

The Clarity Act Has Stalled, Denting Crypto Prices

January 16, 2026 – 02:36 PM EST

Early indicators suggested a strong market revival for cryptocurrencies, but the momentum has faltered due to legislative stagnation. The Clarity Act, aimed at establishing a regulatory framework for the crypto industry, has stalled in Congress, causing prices to dip.

Legislative Setbacks

Notably, Coinbase’s CEO Brian Armstrong withdrew his support for the bill, citing concerns over provisions that could jeopardize certain products. Lawmakers are also engaged in debates that might impact senior officials’ involvement in crypto investments. These developments have led to significant losses in crypto stock prices, affecting companies like Coinbase, Circle, and Bullish.

Market Reaction

In the wake of these legislative hurdles, both Bitcoin and altcoins like Ethereum and Solana have lost earlier gains from the week. However, some recovery is noted, as investors re-evaluate based on remaining opportunities within the market.

GE Vernova Jumps, Constellation and Vistra Slump on Trump’s Power Grid Plan

January 16, 2026 – 01:28 PM EST

Shares in GE Vernova rallied following news from the Trump administration regarding major changes to the electricity grid. Reports indicate that the administration plans to urge PJM Interconnection to auction off new electricity contracts, which could lead to an investment of around $15 billion in new power plants.

Impact on Companies

GE Vernova shares experienced approximately a 6% increase as investors expect the legislation to benefit their manufacturing of gas turbines. Conversely, independent power producers like Constellation Energy and Vistra saw their shares decline by 11% and 7%, respectively.

Energy Pricing Discussion

As electricity bills climb, particularly where data centers dominate, the discussions surrounding this plan highlight ongoing concerns about AI’s impact on energy consumption. This narrative is likely to play a significant role in the midterm elections, emphasizing affordability as a critical issue.

AST SpaceMobile Stock Soars on Potential ‘Golden Dome’ Contracts

January 16, 2026 – 12:37 PM EST

Shares of AST SpaceMobile have spiked dramatically following the announcement of potential contracts related to the U.S. Missile Defense Agency’s “Golden Dome” project. The recent contract award positions AST SpaceMobile as a bidder for contracts worth up to $151 billion.

A Strategic Position

The company has been invited to compete for contracts under the SHIELD program, which is part of the Golden Dome initiative aimed at enhancing air and missile defense capabilities. Such developments not only elevate AST’s market presence but also reflect the growing interest in space-based technology and infrastructure.

Broader Industry Trends

The broader focus on space exploration is evident, with major players like Elon Musk’s SpaceX exploring significant IPOs. This trend underscores the rising intersection of technology, defense, and space, making companies in this area increasingly attractive to investors.

Micron Shares Jump After Director Buys $8 Million of Stock

January 16, 2026 – 11:30 AM EST

Micron’s shares soared when investor enthusiasm surged following a significant purchase from board member Mark Liu. Liu acquired $8 million worth of Micron shares, which has been widely interpreted as a strong vote of confidence in the semiconductor giant.

Performance Surge

The stock reacted positively, climbing more than 5% shortly after this announcement, reinforcing Micron’s place as a leading stock to watch. The company has already seen a remarkable year, with shares increasing approximately 40% amid robust demand in the memory and data storage sectors.

Rate-Cut Chances Seem More Precarious as Fed Officials Rally Behind Powell

January 16, 2026 – 10:17 AM EST

With the Trump administration’s investigation into Federal Reserve Chair Jerome Powell, sentiments around potential interest rate cuts have shifted. Rather than capitulating to external pressures, several Fed officials have publicly expressed support for Powell and the necessity of maintaining the Fed’s independence.

The Response from the Federal Reserve

Fed officials’ defense suggests that they are more committed than ever to implementing monetary policy decisions based on economic fundamentals rather than political influence. As a result, traders are recalibrating their expectations regarding early-year rate cuts amidst shifting political dynamics in Washington.

This ongoing narrative in the financial landscape highlights the intricacies of market behavior amid legislative changes, corporate performance, and political dynamics. Investors are advised to keep a close watch on these developments as they unfold.