S&P 500 ends the week flat at 7,650.50 as the Fed hikes and the Dow drops 1.69%

S&P 500 week close: 7,650.50 (-0.08%) Nasdaq Friday close: 26,522.55 (+0.39%) Sentiment: mixed

The S&P 500 finished the week ending 18 September 2026 at 7,650.50, down 0.08%, after the Federal Reserve raised its policy rate 25 basis points on Wednesday 16 September and 16 of 18 policymakers projected at least one further increase before year end. Schrodinger SDGR.US rose 52.58% over the five sessions, the largest weekly move in the large-cap US screen, after co-founding a new biotechnology company, Tectora, with New Enterprise Associates and RA Capital Management. The 10-year Treasury yield ended at 4.998%, and index returns split along duration: the Nasdaq gained 0.72% while the Dow lost 1.69% and the Russell 2000 lost 1.50%.

The week on Wall Street

The Dow Jones Industrial Average closed the week ending 18 September 2026 at 51,682.64, down 890.65 points or 1.69%, the weakest of the four main US indices. The Federal Open Market Committee voted 12-0 on Wednesday to lift the funds-rate target to a range of 3.75% to 4.00%, the first increase since July 2023, and the projections published with the decision put 16 of 18 members on at least one more rise this year. The 10-year Treasury yield ended the week at 4.998% after adding about 5 basis points on Friday, and the dollar index gained 1.10% to 100.215.

The Nasdaq Composite added 0.72% to 26,522.55 and the S&P 500 held at 7,650.50, while the Russell 2000 fell 1.50% to 2,860.40. Crude eased back below $100 a barrel from a four-month high as concern over Saudi supply disruption faded. The VIX fell 6.50% to 14.81 in the same week that the gap between the best and worst US sector reached 4.88 points.

Sector scorecard (5-day)

Health Care led the 11 US sector SPDRs for the week ending 18 September 2026 at +1.83%, and Utilities lagged at -3.04%.

• +1.83% Health Care (XLV.US), the only sector up more than 1% on the week
• +1.03% Technology (XLK.US), on gains in security software including ZS.US +19.92%
• -2.43% Financials (XLF.US), with the KBW Nasdaq Bank Index down 4.9%
• -3.04% Utilities (XLU.US), the weakest sector, with Real Estate (XLRE.US) at -2.05%
• 4.88 points of dispersion between the best and worst sector

Top movers: week ending 18 September 2026

Schrodinger SDGR.US gained 52.58% to $29.02 in the week ending 18 September 2026, the largest five-day move among US names above $2 billion market value.

Friday US session

The S&P 500 closed Friday 18 September 2026 at 7,650.50, up 12.74 points or 0.17%, with the Dow lower and the Nasdaq higher on the same day.

• S&P 500: 7,650.50 (+0.17%)
• Nasdaq Composite: 26,522.55 (+0.39%)
• Dow: 51,682.64 (-0.18%)
• Russell 2000: 2,860.40 (-0.50%)
• VIX: 14.81 (-4.08%)

Technology (XLK.US) rose 0.82% on Friday, the only sector SPDR up more than half a percent. Utilities (XLU.US) and Materials (XLB.US) each fell 1.42%, and the 10-year yield added about 5 basis points to 4.998% as traders lifted bets on a further hike. The dollar index finished the session at 100.215, unchanged on the day after a 1.10% gain across the five sessions.

Macro themes that played out

The Federal Reserve raised the funds-rate target to 3.75% to 4.00% on 16 September 2026, its first increase since July 2023, on a 12-0 vote under Chair Kevin Warsh. Kansas City Fed President Jeff Schmid said the Fed has work to do on inflation and that the week's action was a step in that direction. The projections released with the decision put 16 of 18 policymakers on at least one more increase before the end of 2026. For 2027 the committee split eight for another hike, six for a hold and four for cuts.

Utilities (XLU.US) fell 3.04%, Financials (XLF.US) 2.43% with the KBW Nasdaq Bank Index down 4.9%, and Real Estate (XLRE.US) 2.05%, the three weakest US sectors of the week. Energy (XLE.US) fell 1.27% even though crude spent most of the week near four-month highs before slipping below $100. Bitcoin traded near $81,000, its highest since May, and the crypto-adjacent listings rose while the banks fell: PS.US +32.28% and MSTR.US +17.52%.

Diagnostics and research tools drove the Health Care gain. SDGR.US rose 52.58%, TEM.US 31.91%, TWST.US 31.26%, ILMN.US 16.07% and RVTY.US 15.40%. Clinical-stage drug developers fell. XENE.US dropped 32.23% after pausing Phase 3 enrollment in azetukalner for depression on a neuropsychiatric safety signal, and SRRK.US lost 15.81%.

AutoNation AN.US told a Morgan Stanley conference on 17 September that new-vehicle gross profit per unit would fall about 10% sequentially in Q3, and that EV penetration had dropped to low single digits from 8% to 9% after federal incentives expired. AN.US closed the week at -17.37% and Sonic Automotive SAH.US at -16.13%.

Week ahead: Mon to Fri (ET)

Five US data prints and three Treasury auctions land in the week of 21 to 25 September 2026, with no CPI or PCE release until 30 September.

• Mon 21 Sep Chicago Fed National Activity Index for August, 8:30am ET. EMAT.US joins the Russell 2000 and Russell 3000 the same day.
• Tue 22 Sep Richmond Fed Manufacturing Index for September, 10:00am ET. Treasury sells $78 billion in 2-year notes at 1:00pm ET. AZO.US reports before the open.
• Wed 23 Sep S&P Global flash manufacturing, services and composite PMIs for September, 9:45am ET. Treasury sells $70 billion in 5-year notes at 1:00pm ET. PAYX.US reports before the open.
• Thu 24 Sep Weekly jobless claims and the Q2 current account balance, 8:30am ET. New home sales for August, 10:00am ET. Kansas City Fed manufacturing for September, 11:00am ET. Treasury sells $44 billion in 7-year notes at 1:00pm ET. DRI.US reports before the open and COST.US after the close.
• Fri 25 Sep Durable goods orders for August, 8:30am ET. Final University of Michigan consumer sentiment plus the 1-year and 5-year inflation expectations, 10:00am ET.

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