Fed Eases, Tech Wobbles: The Week That Changed Market Leadership

This week’s U.S. market action was shaped by major shifts in Federal Reserve policy, corporate earnings and investor sentiment that appear to be redefining where leadership is coming from. The Federal Reserve cut interest rates by 25 basis points and signaled a shift to a meeting‑by‑meeting decision framework, reducing fears of an overly restrictive or “hawkish” cut and giving markets some relief. This more accommodative stance helped lift smaller‑cap and cyclical sectors, with the Russell 2000 reaching record highs, as investors rotated out of high‑growth tech names and into stocks that benefit from rate cuts and economic sensitivity. Earnings from tech‑linked giants highlighted uneven fundamentals: Oracle reported solid cloud and AI revenue growth but weaker cash flow, while Broadcom delivered good semiconductor results but saw its stock reset after a prior rally. These mixed results contributed to volatility in technology and AI‑exposed equities, reinforcing the narrative that leadership may be broadening beyond mega‑cap tech. Technically, the S&P 500 is trading in a broadening pattern, and market participants are watching key levels closely — a move below 6800 could retest recent lows, while a break above 6900 might extend the advance toward the 7160–7200 range. #FedPolicy #MarketRotation #TechStocks #EarningsImpact #SlimScan #GrowthStocks #CANSLIM