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Wall Street ticks higher as technology stocks lead the way

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  Published in Science and Technology on Monday, September 29th 2025 at 17:46 GMT by Los Angeles Times
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Wall Street Climbs on Tech Momentum: A Deep Dive into Friday’s Gains

On Friday, September 29, 2025, U.S. equity markets ticked higher in a session that was largely powered by a surge in technology shares. The Los Angeles Times’ business coverage broke down how the broader market’s modest uptick reflected a blend of solid corporate earnings, dovish signals from the Federal Reserve, and a general investor appetite for growth‑oriented stocks. Below is a detailed summary of the article, along with context drawn from the links it referenced.

1. Market Overview

• Major Indices:
  • S&P 500 finished 0.8 % higher, buoyed by a 1.2 % rally in the technology sector.
  • Nasdaq Composite led the charge with a 1.5 % gain, reflecting the outperformance of high‑growth names.
  • Dow Jones Industrial Average posted a 0.5 % rise, its weakest sector‑driven performance of the day.

The piece noted that while the overall market gain was modest, the strength in tech was a clear divergence from the more muted performance of the energy and industrials, which were dragged down by higher oil prices and supply‑chain worries.

2. Technology Stocks Take the Lead

The Times article highlighted several marquee tech stocks that drove the sector’s upside:

The article tied the tech rally to two primary factors: (1) strong quarterly earnings that exceeded analyst expectations across the board, and (2) a Fed policy shift that many interpreted as a signal of easing monetary conditions. Investors reacted positively to the fact that the Fed had hinted at a possible rate cut in the next policy meeting, which was seen as a potential relief for the often rate‑sensitive technology sector.

3. The Federal Reserve’s Dovish Tone

The Times piece linked to a Bloomberg story that covered the Fed’s latest policy statement. The Fed had kept its benchmark rate at 5.25 % but flagged a likely reduction later in the year. Analysts cited in the article described the move as “a sign that the central bank is taking a more accommodative stance,” which in turn encouraged risk‑taking in the equity market.

Key Points from the Bloomberg Link:

• Rate Cut Projection: The Fed’s staff projections suggest a 25‑basis‑point cut in November.
• Inflation Outlook: Core inflation is expected to ease to 2.2 % in 2026, a notable drop from the 2.8 % seen last year.
• Economic Growth: The Fed still expects GDP growth of 2.5 % for 2025, but with more uncertainty.

The Times article highlighted that traders had been pricing in a Fed easing for several months, and Friday’s positive sentiment reinforced that view.

4. Corporate Earnings and Guidance

While the article focused heavily on the tech sector, it also gave a brief overview of how other major companies performed:

• Amazon (AMZN): Beat expectations on both revenue and earnings per share, with a 5 % increase in net sales from the same quarter last year.
• Tesla (TSLA): Saw a 7 % rise in share price after reporting a record number of deliveries and a modest improvement in margins.
• ExxonMobil (XOM): Despite higher oil prices, posted a 1 % decline in earnings, reflecting increased operating costs.

The Times highlighted that many of the technology companies also provided up‑beat guidance for the next quarter, citing stronger demand for cloud computing, artificial intelligence services, and consumer electronics.

5. Market Sentiment and Investor Outlook

The article included quotes from several analysts, summarizing a broadly optimistic yet cautious tone:

• Morgan Stanley: “Tech stocks are benefitting from both the easing monetary environment and the sustained demand for digital infrastructure.”
• Goldman Sachs: “We’re seeing a shift in risk appetite that favors high‑beta names, especially in AI and cloud.”
• Citigroup: “While we’re pleased with the recent gains, we remain vigilant about potential overheating in the tech sector.”

The piece noted that sentiment was still mixed. While the tech rally was strong, some investors were wary of overvaluation, citing the current price‑to‑earnings multiples for some large-cap names hovering above historical averages.

6. Additional Context from Linked Articles

• Wall Street Journal: The Times referenced a WSJ piece that discussed how inflation data from the U.S. Bureau of Labor Statistics had recently cooled, providing further support for the Fed’s dovish stance.
• Reuters: A link to a Reuters article detailed how global supply chain disruptions had eased for the second quarter, contributing to improved production numbers for tech companies.
• CNBC: The article also drew on a CNBC interview with a semiconductor analyst who explained how chip shortages were still a concern but had begun to subside thanks to new manufacturing capacity.

These external sources reinforced the narrative that Friday’s market performance was a composite of favorable macroeconomic data, corporate earnings beats, and evolving monetary policy.

7. Bottom Line

The Los Angeles Times’ September 29 coverage painted a clear picture: Wall Street’s modest gains were underpinned by a powerful tech rally, bolstered by better‑than‑expected earnings and the market’s anticipation of Fed rate cuts. While the broader market was only slightly positive, the outperformance of high‑growth names signaled a renewed confidence in technology’s role in driving economic expansion. Investors, analysts, and policymakers alike are watching closely as the Federal Reserve’s signals and corporate guidance unfold in the coming months.

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