The S&P 500 Index ($SPX) (SPY) closed down by -0.45% on Wednesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -1.21%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.02%. E-mini S&P futures (ESU26) fell -0.42%, and September E-mini Nasdaq futures (NQU26) rose +0.05%.
Stock indexes gave up an early advance and settled mixed on Wednesday, with the S&P 500 falling to a 6-week low, and the Dow Jones Industrials sinking to a 3-month low. The broader market retreated on Wednesday after the FOMC voted unanimously to raise interest rates by +25 bp and signaled one more rate hike later this year to contain inflation.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks fell to their lows Wednesday afternoon when Fed Chair Warsh said the rate hike was meant to "remove a dose of accommodation." He added that inflation is too high and has been for too long, as too many inflation categories are still rising more than 3%. His comments fueled speculation that the Fed may embark on additional rate hikes.
The FOMC, as expected, voted 12-0 to raise the federal funds target range by +25 bp to 3.75%-4.00% and said the rate hike will support a "timelier" return to 2% inflation. The committee added that, "While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient, productivity growth is strong, and capital investment is robust."
The FOMC's dot plot of rate projections shows the median year-end projection for the federal funds rate at 4.125%, up from 3.750% in June, with 16 of 18 officials expecting to raise interest rates at least one more time by the end of the year.
The FOMC raised its 2026 GDP forecast to +2.3% from +2.2% in June, and raised its 2026 core inflation estimate to +3.4% for the end of 2026, up from June’s forecast of +3.3%.
Stocks initially moved higher on Wednesday as the broader market found support from a plunge in crude oil prices that lowered bond yields and improved market sentiment. Gains in chipmakers also supported modest gains in the Nasdaq 100 on Wednesday after Intel rose more than +3% on a report that said the company was in talks with South Korean chipmaker SK Hynix to produce memory chips in the US for the first time.
Wednesday’s US economic news was mixed for stocks as Aug retail sales rose more than expected, but the Sep NAHB housing market index fell more than expected, matching a 3.75-year low.
US MBA mortgage applications fell -4.1% in the week ended September 11, with the purchase mortgage sub-index down -0.8% and the refinancing mortgage sub-index down -8.8%. The average 30-year fixed-rate mortgage rose +12 bp to a 15-month high of 6.97% from 6.85% in the prior week.
US Aug retail sales rose +1.2% m/m, stronger than expectations of +0.8% m/m and the biggest increase in 5 months. Aug retail sales ex-autos rose +1.4% m/m, stronger than expectations of +0.6% m/m.
The US Aug import price index ex-petroleum rose +0.8% m/m, stronger than expectations of +0.3% m/m.
The US Sep NAHB housing market index fell -3 to match a 3.75-year low of 32, weaker than expectations of 34.
Oct WTI crude oil prices (CLV26) fell by more than -3% on Wednesday after US Energy Secretary Wright said 18 million bbl of crude oil and refined products went through the Strait of Hormuz on Tuesday, easing global supply concerns. Crude losses accelerated Wednesday when Saudi Arabia said it seeks to return about half the capacity of the East-West pipeline within days following a shutdown last week because of drone strikes.
Crude prices earlier surged to a 3.75-month high on Tuesday as disruptions to Middle East supplies persisted. Last Friday, Saudi Arabia closed a major pipeline following attacks, disrupting a key route that bypasses the Strait of Hormuz. The East-West pipeline, which carries 7 million bpd of crude, was closed after threats from Houthi rebels, and officials gave no indication of when it will reopen. The pipeline moves oil away from the Persian Gulf toward the Red Sea, where it can be loaded on tankers. Saudi Arabia told OPEC last Thursday that its crude production in August fell to 6.238 million bpd, the lowest since 1990.
Markets are discounting a 51% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled higher on Wednesday. The Euro Stoxx 50 closed up +0.48%. China's Shanghai Composite recovered from a 6-week low and closed up +0.71%. Japan's Nikkei-225 Stock Average closed up +0.69%.
Interest Rates
December 10-year T-notes (ZNZ6) closed down by -4.5 ticks on Wednesday. The 10-year T-note yield rose +0.6 bp to 5.008%. T-notes gave up an early advance on Wednesday and settled lower after the FOMC raised interest rates by +25 bp and signaled another +25 bp rate hike later this year. T-notes also fell on hawkish comments from Fed Chair Warsh, who said that inflation was too high for too long and that Wednesday’s rate hike removes a “dose of accommodation,” fueling speculation the Fed may embark on a string of rate hikes to contain inflation.
T-notes initially moved higher on Wednesday after WT crude oil prices fell more than -3%, reducing inflation expectations. T-notes also found support after the Sep NAHB housing market index fell more than expected, matching a 3.75-year low.
European government bond yields moved lower on Wednesday. The 10-year German bund yield fell -3.0 bp to 3.507%. The 10-year UK gilt yield fell -9.1 bp to 5.2960%.
Eurozone July industrial production fell -0.1% m/m, a smaller decline than expectations of -0.2% m/m.
UK Aug CPI rose +3.1% y/y, right on expectations, and the largest increase in 5 months. Aug core CPI was unchanged from July at +2.6% y/y, in line with expectations.
Markets are discounting a 52% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
JB Hunt Transport Services (JBHT) closed down more than -13% to lead trucking companies lower and losers in the S&P 500 after saying it expects Q2 to Q3 earnings to drop -5% to -10%. Also, FedEx Freight Holding (FDXF) closed down more than -4%, and Knight-Swift Transportation Holdings (KNX), Old Dominion Freight Line (ODFL), ArcBest (ARCB), and United Parcel Service (UPS) closed down more than -3%. In addition, CH Robinson Worldwide (CHRW), Saia Inc (SAIA), and XPO Inc (XPO) closed down more than -2%, and Marten Transport Ltd (MRTN) closed down more than -1%.
Energy stocks and service providers retreated on Wednesday as WTI crude oil fell more than -3%. Diamondback Energy (FANG) closed down more than -8% to lead losers in the Nasdaq 100, and ConocoPhillips (COP) and Occidental Petroleum (OXY) closed down more than -6%. Also, APA Corp (APA) and Devon Energy (DVN) closed down more than -5%, and ExxonMobil Holdings (XOM), Halliburton (HAL), and SLB Limited (SLB) closed down more than -3%. In addition, Chevron (CVX) closed down more than -2%.
Chipmakers and AI stocks moved higher on Wednesday, led by a +4% jump in Intel (INTC) after a report that the company is in talks with South Korean chipmaker SK Hynix to produce memory chips in the US for the first time. Also, Marvell Technology (MRVL) closed up more than +3%, and Advanced Micro Devices (AMD), Seagate Technology Holdings Plc (STX), and Western Digital (WDC) closed up more than +1%.
Cloud infrastructure stocks rallied on Wednesday. Lumentum Holdings (LITE) closed up more than +7% to lead gainers in the S&P 500 and Nasdaq 100. Also, Applied Digital (APLD) closed up more than +4%, and CoreWeave (CRWV) closed up more than +3%. In addition, Arista Networks (ANET) and Oracle (ORCL) closed up more than +2%, and Nebius Group NV (NBIS) closed up +0.96%.
ON Semiconductor (ON) closed down more than -9% after announcing its long-term growth strategy and unveiling its Embedded Power Platform at its investor day conference.
Huntington Bancshares (HBAN) closed down more than -6% after cutting its 2027 EPS estimate to $1.75 to $1.83 from an April outlook of $1.90 to $1.93.
FTAI Aviation Ltd (FTAI) closed up more than +7% after announcing a $500 million stock repurchasing plan.
Brinker International (EAT) closed up more than +3% after Seaport Global Securities initiated coverage on the stock with a buy recommendation and a price target of $230.
Earnings Reports (9/17/2026)
American Resources Corp. (AREC).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
Lopsided Stock Market Momentum Suggests This is the Top… or the Buying Opportunity of the Century S&P Futures Gain as Oil Retreats, Fed Rate Decision in Focus U.S. Stock Futures Pare Losses as Oil Prices Retreat, FOMC Meeting on Tap S&P 500: Q4 Strength or Election Risk?