Highlights

• The ASX technology sector finished almost 3% higher on 22 September 2026, with WiseTech Global, Megaport and TechnologyOne all closing in positive territory.
• The rally came less than a week after the US Federal Reserve raised rates by 25 basis points on 16 September 2026, its first hike since 2023.
• Strong global demand for AI infrastructure outweighed concerns about rising borrowing costs.

Tech leads the local market

Australian technology shares ended the session as clear outperformers on 22 September 2026, with the sector closing up close to 3% as optimism around artificial intelligence flowed through from Asian and US markets. Cloud connectivity provider Megaport posted the strongest gain of the group, while logistics software firm WiseTech Global and enterprise software company TechnologyOne also finished well ahead.

How the shares closed

• WiseTech Global (ASX: WTC): closed up AU$0.910 (2.864%) at AU$32.680.
• Megaport (ASX: MP1): closed up AU$0.809 (4.297%) at AU$19.660.
• TechnologyOne (ASX: TNE): closed up AU$0.769 (2.667%) at AU$29.640.

The Fed moved in the other direction

The rally was notable because the backdrop has tightened, not loosened. On 16 September 2026, the Federal Reserve voted unanimously to lift its benchmark rate by a quarter point to a range of 3.75%–4%. Chairman Kevin Warsh pointed to stubborn inflation, driven partly by higher energy costs linked to Middle East conflict, and most officials signalled another increase could come before year-end.

Higher interest rates can put pressure on growth stocks because their valuations are often linked to expected future earnings. This time, though, Treasury yields eased after the decision, suggesting investors welcomed the Fed's firmer stance on inflation. Vanguard described the move as a modest recalibration rather than the start of a prolonged tightening cycle, which helped temper fears of a sharper squeeze.

AI spending kept momentum alive

Artificial intelligence remained the dominant theme. Chip stocks drove gains across Asia at the start of the week, with Samsung Electronics jumping 4% and South Korea's KOSPI rising 1.7%. SoftBank also announced plans to raise more than US$11 billion through bonds to fund its AI expansion. Vanguard noted that the vast capital required to build AI infrastructure is now flowing into bond markets as well as equities. Sentiment was further supported by US–China trade talks ahead of a Trump–Xi summit in Washington later this week, where AI and tariffs are expected to be on the agenda.

The bigger picture

For now, AI-driven growth appears to be outweighing rate concerns. But with US 10-year yields touching 5% last week and further Fed hikes on the table, tech valuations will remain sensitive to any shift in the inflation outlook when trading resumes.

Note- All data presented is based on information available at the time of writing.

Disclaimer for Kapitales Research

The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.Disclosure: The information mentioned above has been sourced from the company reports and a third-party database, i.e. Koyfin. Investors are advised to use strict stop-loss to protect their investments in case of any unfavorable/uncertain market events.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au