The Markets (as of market close September 25, 2026)
Stocks ended last week generally higher, led by gains in technology and artificial intelligence-related shares, while bond markets remained under pressure as Treasury yields continued to climb. The NASDAQ gained 2.1% for the week, while the S&P 500 advanced 1.2% and the Dow rose 0.3%. Small-cap stocks moved in the opposite direction, with the Russell 2000 declining 0.8%.
Stock traders continued to weigh strong corporate earnings and resilient economic activity against persistent inflation and expectations that interest rates may remain elevated. The 10-year Treasury yield climbed 19 basis points to 5.18%, hovering near its highest levels in roughly two decades. Among market sectors, information technology, health care, industrials, and communication services posted gains, while most other sectors finished the week lower.
Energy prices provided some relief after their recent surge. Crude oil fell nearly 7% for the week to $92.66 per barrel amid renewed hopes for progress toward an agreement between the United States and Iran. The U.S. dollar strengthened, while gold prices declined approximately 2.1%.
Last Week’s Economic News
- The housing market showed some improvement in August.
- Manufacturing activity was relatively steady.
- The labor market remained relatively stable.
- Consumers continued to face higher prices at the pump.
Eye on the Week Ahead
Stock market watchers will have several important economic reports to digest this week. The final estimate of second-quarter gross domestic product will provide an updated look at the pace of U.S. economic growth following the previous estimate of a 1.5% annualized expansion.
Also scheduled for release is the latest report on personal income and consumer spending, including the Personal Consumption Expenditures Price Index, one of the Federal Reserve’s preferred measures of inflation. The week concludes with the September employment report, which will provide new information on job growth, unemployment, and wage trends. Together, these reports could help shape expectations for the economy, inflation, and the Federal Reserve’s next policy moves.
Have a nice week!
Sincerely,
Robert G. Carpenter