Why software stocks' rally after Trump tariff ruling may not last

In a landmark 6-3 decision that has sent shockwaves through global financial markets, the Supreme Court struck down President Trump’s sweeping global tariffs on Friday, ruling the administration “overstepped its constitutional authority” as it used emergency powers to bypass Congress. Software stocks, as represented by “IGV” or the iShares Expanded Tech-Software Sector exchange-traded fund (ETF), are inching higher in response as part of a broader “relief rally”. At the time of writing, it’s up some 2.0% versus the market open. However, a deeper dive into the mechanics of this rally suggests it’s built on a “foundation of sand.” The sudden pivot to optimism largely ignores a trio of “major threats” that have nothing to do with tariffs. AI disruption fears…