The iShares Expanded Tech-Software Sector ETF ($IGV) drops 30% year-to-date, partly blamed on AI like Claude, signaling broader tech sector pain in 2026.

According to Charlie Bilello, while the Dow Jones Industrial Average reached an all-time high, surpassing 50,000, the Software Sector faced significant challenges. The sector experienced a drawdown of 32% as of Thursday, marking its largest decline since the 2022 bear market. This highlights a divergence in performance between broader market indices and sector-specific ETFs like $IGV.