The S&P 500 declined 0.09%, while the Nasdaq rose 0.72%. The Dow fell 1.70%. The MSCI EAFE Index, which tracks developed overseas stock markets, fell 1.32%.¹˒²
A Week of Mixed Signals
Stocks opened lower as safety concerns weighed on the artificial intelligence trade and oil prices moved higher. Markets slipped again the following session as the 10-year Treasury yield moved above 5%, reaching its highest level in 19 years.³˒⁴
Markets steadied midweek as investors waited for the Federal Reserve's decision following its September meeting. The Fed raised the federal funds rate by 0.25 percentage point to a target range of 3.75% to 4.00%, citing elevated inflation. Stocks fell after the decision, although the broader market decline was modest.⁵
Stocks rebounded Thursday, recovering some of the previous day's losses. Lower oil prices, falling Treasury yields, and gains among several megacap technology stocks helped lift all three major averages. The rally lost some momentum Friday morning as Treasury yields moved higher again.⁶˒⁷
The Fed Takes Center Stage
The Federal Open Market Committee voted unanimously to raise interest rates by 0.25 percentage point. The Fed's updated projections also showed that most officials expect at least one more rate adjustment this year, with two FOMC meetings remaining before the end of 2026.⁸
In his post-meeting press conference, Fed Chair Kevin Warsh said inflation remains too high and has been for too long. He also said the latest inflation readings did not show meaningful improvement in underlying trends. The Fed said the rate increase was intended to support a timelier return to its 2% inflation goal.⁸˒⁹
For investors, the combination of higher Treasury yields, elevated oil prices, and continued uncertainty around the AI trade left several competing forces in play as the week came to a close.
Economic News to Watch
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: Investor's 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 and forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.
Upcoming Earnings Reports
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. They should not be considered a solicitation for the purchase or sale of 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.
Footnotes and Sources¹ WSJ.com, September 18, 2026
² Investing.com, September 18, 2026
³ CNBC.com, September 14, 2026
⁴ CNBC.com, September 15, 2026
⁵ Federal Reserve, September 16, 2026
⁶ CNBC.com, September 17, 2026
⁷ WSJ.com, September 18, 2026
⁸ Federal Reserve, September 16, 2026
⁹ WSJ.com, September 16, 2026