Stocks ended last week mixed as investors navigated the Fed’s rate decision, Treasury yields, oil prices, and the volatile AI trade.
The Standard & Poor’s 500 Index declined 0.09 percent, while the Nasdaq Composite Index rose 0.72 percent. The Dow Jones Industrial Average fell 1.70 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, skidded 1.32 percent.1,2
Stocks opened lower to start the week as safety concerns tempered the artificial intelligence trade and oil prices rose. Markets slid again over the next session as the bellwether 10-year Treasury yield rose above 5 percent to a 19-year high.3,4
Markets steadied midweek as investors awaited the Fed's decision on the final day of its September meeting. The Fed raised short-term interest rates by a quarter percentage point in a widely anticipated decision, reflecting inflation concerns. Stocks fell following the decision, but declines in the broader market were modest.5
Stocks rebounded Thursday, clawing back some losses from the prior session. Lower oil prices, falling Treasury yields, and advances in a handful of megacap tech stocks helped lift all three major market averages. But the relief rally stalled out a bit on Friday morning as Treasury yields rose again.6,7
Source: YCharts.com, September 19, 2026. Weekly performance is measured from Monday, September 14 to Friday, September 18. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.
The Federal Open Market Committee voted unanimously to raise interest rates, increasing the Fed Funds rate by a quarter percentage point to a target range of 3¾ to 4 percent. Of the 18 officials who submitted medium-term projections for the Fed’s so-called “dot-plot,” 16 penciled in at least one more adjustment this year. (The FOMC meets twice more before year-end.)8
In his post-meeting press conference, Fed Chair Kevin Warsh said that “inflation is too high and has been for too long.” He added that despite expanding economic activity, “uncertainty remains elevated, owing in part to geopolitical developments,” and that the Fed’s decision supports a “timelier return” to its goal of 2 percent inflation.8,9
Tuesday: Richmond Fed President Tom Barkin speaks.
Wednesday: Purchasing Managers Index (PMI)—Manufacturing. Purchasing Managers Index (PMI)—Services.
Thursday: Weekly Jobless Claims. New Home Sales. Fed President Barkin speaks.
Friday: Durable Goods. U. Michigan Consumer Sentiment Survey.
Source: Investors Business Daily - Econoday economic calendar; September 18, 2026. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.
Tuesday: AutoZone, Inc. (AZO)
Wednesday: Cintas Corporation (CTAS), Paychex, Inc. (PAYS)
Thursday: Costco Wholesale Corporation (COST)
Source: Zacks, September 18, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.
1. WSJ.com, September 18, 2026
2. Investing.com, September 18, 2026
3. CNBC.com, September 14, 2026
4. CNBC.com, September 15, 2026
5. WSJ.com, September 16, 2026
6. CNBC.com, September 17, 2026
7. CNBC.com, September 18, 2026
8. WSJ.com, September 16, 2026
9. WSJ.com, September 16, 2026
10. creatoreconomy.so, June 25, 2025
11. ideas.ted.com, November 18, 2025
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
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