August software surge sets up a tougher September for chips

Software stocks led gains in August—IGV up over 16%—while chipmakers lagged, with SOXX up only about 1% and late-month declines wiping roughly $1.1 trillion from semiconductor group value. Leaders like Atlassian, Palantir, Salesforce, ServiceNow and CrowdStrike surged, cementing a record software rally that widened a divergence from hardware. Looking ahead, history suggests September tends to be tougher for both the broader market and semiconductors: software has historically posted a median gain around 1% through mid-September, then softens; the S&P 500 often slides and volatility rises, making this August strength a potential headwind for the month.