The software sector has been the worst-performing group in the S&P 500 year-to-date, experiencing a decline of over 20% as of last Thursday. Bespoke Investment Group posted on X that over the last two days, the sector has seen a notable rally, gaining 5% as investors focus on selecting winners rather than simply purchasing the biggest laggards. This shift in investor strategy highlights a more discerning approach to stock selection within the software industry.