US software stocks to keep rebounding, says Goldman Sachs prime brokerage note

Core Viewpoint - Goldman Sachs prime brokerage indicates that the recent rebound in software and IT services stocks is likely to continue despite hedge funds holding record short positions in the sector [1] Industry Summary - The S&P 500 software and services index has increased over 18% this year, recovering from a loss of more than $1.2 trillion in market value [1] - This week, the index rose over 4%, signaling a potential recovery trend in the software sector [1] Company Summary - As of February 24, software and IT services were the two most shorted industries in the U.S., with short positions reaching the highest level on record since Goldman began tracking in 2016 [1] - Long positions, which bet on stock price increases, are currently at a record low [1]