By Nauman Khan
Publication Date: 2026-09-30 17:58:00
This article first appeared on GuruFocus.
Software and large-cap technology shares outperformed semiconductor stocks on Wednesday as softer inflation data boosted investor appetite for growth-oriented sectors.
Tech-focused exchange-traded funds tied to software and the so-called Magnificent Seven group posted gains while chip stocks lagged.
Apple (AAPL) and Alphabet (GOOGL) each rose more than 2% in morning trading. Nvidia (NVDA), Amazon (AMZN) and Microsoft (MSFT) added about 1.5%. Meanwhile, the iShares Expanded Tech-Software Sector ETF climbed 1.3%, while the iShares Semiconductor ETF slipped 0.2%.
The move followed inflation figures that came in below expectations, reducing concerns that the Federal Reserve may raise interest rates at its October meeting. Lower rate expectations often support growth sectors because future earnings become more valuable when borrowing costs are expected to remain stable.
Despite the advance in technology shares, market participation remained uneven, suggesting investors continued to favor select growth names over the broader market. Growth and momentum stocks led gains as value-oriented sectors trailed.
