By Alex Eule

A Software Revival. For long stretches of the last decade, tech stocks drove much of the market's gains. The AI boom supercharged that trend, until it didn't. Early in 2026, in fact, tech was the market's kryptonite, with once-hot software companies largely to blame for the trouble.

There are still fears about how much business AI and so-called agents could steal from software companies like Adobe, Salesforce, and even Microsoft. But we may have the first signs of software breaking out of its slump.

Last night, Atlassian, a maker of enterprise collaboration tools, said revenue had grown 32% in its latest quarter. Meanwhile, its CEO pushed back aggressively on the AI-is-eating software narrative:

"I hope we've been very consistent on our views in that world. We are not seeing any signal of seat compression from customers. If anything, we are seeing the opposite. We are seeing strong expansion numbers, strong cross-sell numbers between Collections, strong usage of AI and strong commitment to the Atlassian platform."

Atlassian, whose earnings report followed a one-year stock slide of 70%, closed today up 30%. The company's results pushed other software stocks higher as well. Salesforce rose 4.1%. Oracle was up 6.5%. And the industry benchmark iShares Expanded Tech-Software Sector ETF gained 3.2%.

If software is turning around, the stock market could have a new catalyst for gains.

Sure enough, the tech sector's heavy weighting was enough to lead the S&P 500 to another record close today, even as a majority of the index's individual components fell. The large-cap index finished the day up 0.3%, while the Nasdaq Composite rose 0.9%. The Dow Jones Industrial Average, which is relatively light on software and tech stocks, fell 153 points, or 0.3%.

Watch our TV show on Fox Business Saturday or Sunday at 10:30 a.m. ET. This week, VC investor Maggie Sprenger on opportunities in next-generation defense technology. Plus, gasoline prices are climbing to their highest since the start of the war. What to expect and where to invest.

The Hot Stock: Cboe Global Markets +9.0% The Biggest Loser: Clorox -9.7%

Best Sector: Technology +1.4% Worst Sector: Energy -1.3%

This Weekend's Magazine

The Calendar

Earnings season isn't over yet.

A slew of major U.S. firms will release quarterly results next week. We'll also get updates on the labor market.

Monday's earnings slate is headlined by Palantir Technologies, Pinterest, and ON Semiconductor. Advanced Micro Devices, Shopify, Pfizer, and PayPal report on Tuesday. Walt Disney, Arm Holdings, DoorDash, Uber Technologies, and Novo Nordisk will follow on Wednesday. Thursday's slate includes McDonald's and Airbnb. Wendy's and Brookfield Asset Management will wrap things up on Friday.

The April jobs report from the Bureau of Labor Statistics on Friday will be watched closely by Wall Street. Other noteworthy releases include the Institute for Supply Management's Services Purchasing Managers Index, or PMI, for April and the BLS' Job Openings and Labor Turnover Survey, which are both on Tuesday.

The University of Michigan will also release its preliminary consumer sentiment index for May on Friday.

-- Connor Smith

What We're Reading Today

   -- Why 3 Fed Presidents Dissented Over a Single Line in a Policy Statement 
 
   -- AI Spending Is Rewriting Big Tech's Playbook 
 
   -- Protecting Kids Is Bad for Business, Roblox Learns 
 
   -- Apple Stock Surged After Earnings. 3 Concerns Lurk Beneath the Surface. 
 
   -- And this weekend's cover story: Jane Fraser Turned Citigroup Inside Out. 
      Now Comes the Hard Part. 

Join Barron's Live on Monday at noon. Barron's Andrew Bary is in Omaha, attending the Berkshire Hathaway annual meeting -- the first without Warren Buffett on the stage. Senior Managing Editor Lauren Rublin speaks with Bary and Berkshire analyst Cathy Seifert, a senior vice president at CFRA Research, about what's ahead for the storied company.

Barron's Live features timely and actionable insights for investors. We give you behind-the-scenes conversations with the newsroom, connecting you with our editors and reporters covering the markets, the economy, and more.

Sign up here

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

May 01, 2026 19:55 ET (23:55 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.