- The S&P 500 saw a significant rally in May, up 5.3%, primarily driven by the information-technology sector, which rose 16%.
- Key performers included Dell, whose shares doubled after a strong earnings report, and Datadog, up 82% for the month.
- Despite overall gains, major companies like Microsoft trailed behind with only a 9.1% increase in May and ongoing losses for 2026.
- Software companies face significant challenges due to AI disruptions, prompting a sell-off of stocks like Microsoft and Salesforce.
- However, closed-end funds such as the BlackRock Science and Technology Term Trust and Columbia Seligman Premium Technology Growth Fund are thriving, outperforming the broader tech sector by leveraging active management and favorable market dynamics.
- Analysts predict substantial growth, with estimates of 20% upside and attractive yields, as these funds capitalize on economic shifts and undervalued opportunities in the tech landscape.