Financial insights for the week ending September 18, 2026
For the week ending September 18th, markets finished mixed, with the S&P 500 down 0.1%, the Nasdaq gained 0.7%, the Dow dropped 1.7%, and the Russell 2000 fell 1.5%.
The news story we've been writing about since July finally happened. The Fed raised rates a quarter point on Wednesday, its first hike in three years. This brings the target range to 3.75% to 4%. And here's the detail that was most striking was that the vote was unanimous. This was the same committee that spent the summer split with three dissents in July, sides arguing in speeches, and by Wednesday all twelve voters landed in the same place. Last week's inflation report was likely “the final straw”, prices rose again in August, and the annual rate is still sitting well above the Fed's target, now five years running. Chair Warsh kept his press conference short and thesis short; inflation is higher than desired, and more hikes are projected in 2026 with none penciled in for 2027. Markets heard "higher for longer" and traded accordingly. The Dow dropped over 600 points Wednesday afternoon, and the 10-year Treasury yield topped 5%, a level not seen since 2007. And just because we’ve made it this far in the blog doesn’t mean energy prices have subsided. Diesel hit record highs this month and has been climbing faster than gasoline, continuing to be squeezed by the Iran conflict and refinery troubles abroad, and diesel matters more than most people realize because it's the fuel that moves freight, runs farms, and powers construction. When diesel gets expensive, everything shipped, grown, or built gets a little more expensive with it. That's the pipeline the Fed is trying to shut off before it feeds another year of sticky prices.
Next week the calendar finally gets a breather. The only report of note is durable goods orders on Friday which is a read on how much businesses are spending on equipment, though this report rarely moves markets. After a stretch that packed in a jobs surprise, back-to-back inflation reports, and a rate hike, a quiet week is not the worst thing for investors. We'd expect trading to be driven less by data and more by digestion, as investors settle into what a rising-rate world means for the fall season.
This week's tip is the least glamorous one we'll ever give, but maybe the most important: build (or fortify) the emergency fund. A recent study from J.P. Morgan Asset Management found that 90% of people had at least one month in the past year where unexpected expenses ran more than 25% above their normal monthly spending. Nine out of ten! Surprise spending isn't the exception, it's a near certainty, the only question is which month. When it inevitably happens, just one in three Americans could cover it without reaching for a credit card, taking a loan, or cutting back retirement contributions. That's the part that does the real damage; a car repair paid at 22% interest or paused contributions that quietly cost years of compounding interest. The fix is boring and it works. We recommend a separate savings account holding three to six months of expenses, built up automatically, even if it starts at $50 a paycheck. Not invested, not tucked in a CD, just liquid and reachable. If the fund exists, an emergency is an inconvenience. If it doesn't, an emergency becomes debt.
Enjoy your day! Come back next Saturday for our latest commentary. We are here to answer any of your financial questions.