Key Takeaways
- The Federal Reserve raised its benchmark rate by 25 basis points to a 3.75% to 4.00% range on September 16 in a unanimous vote, its first hike since 2023.
- Performance dispersion was wide: the Nasdaq 100 ETF (QQQ) gained 0.92% while the Dow Jones ETF (DIA) fell 1.88% and the Russell 2000 ETF (IWM) lost 1.42%.
- Healthcare and technology led sectors, with the Healthcare ETF (XLV) up 1.83%, while utilities, financials, and real estate lagged.
- Silver was the strongest commodity proxy in the data, with the Silver ETF (SLV) rising 3.10%, while broad bonds were little changed.
- Central banks diverged globally, with the Bank of England holding at 3.75% and the Bank of Japan hiking to 1.25%, as widely reported.
Markets at a Glance
September 14 – September 18, 2026
1-week total return by segment, via ETF proxies, measured from the prior week’s final close (Sep 11, 2026) through the Sep 18, 2026 close. Bars share one scale across groups.
Equities
Bonds
Sectors
Alternatives
Factors
Weekly Recap
Major U.S. equity benchmarks finished the week split along style and size lines. The S&P 500 ETF (SPY) eased 0.36% and the Russell 1000 ETF (IWB) slipped 0.19%, while the Nasdaq 100 ETF (QQQ) rose 0.92%. Weakness was more pronounced in the Dow Jones ETF (DIA), down 1.88%, and the Russell 2000 ETF (IWM) of small caps, down 1.42%.
International markets also softened. The International Developed ETF (EFA) fell 1.60% and the Emerging Markets ETF (EEM) declined 1.18%, while the MSCI World ETF (URTH) lost 0.48%. Over the trailing year, the picture remains broadly positive, with SPY up 16.81% and QQQ up 22.86%, a reminder that a single week sits within a much longer arc.
What Moved Markets This Week
The central event was the Federal Reserve's decision on September 16 to raise its benchmark rate by 25 basis points to a range of 3.75% to 4.00%, its first increase since 2023, in a unanimous 12 to 0 FOMC vote, as widely reported. Commentary described the accompanying press conference as hawkish, with reports noting the U.S. Dollar Index firming and the 10-year Treasury yield brushing near 5%.
Central bank policy diverged elsewhere. According to widely reported coverage, the Bank of England held its rate at 3.75% and the Bank of Japan raised its rate to 1.25%. On the inflation front, data released September 11 showed the U.S. annual inflation rate at 3.4% for the 12 months ending in August.
Energy headlines added volatility. Reports indicated crude oil climbed toward the mid-$106 area on Saudi pipeline and Red Sea supply concerns before easing as repair and rerouting talk cooled the risk premium; the Crude Oil ETF (USO) finished the week down 0.67%. In Europe, the auto sector drew attention after Volkswagen lowered its 2026 operating profit outlook, citing one-off items and a weak Chinese market, according to reported coverage, a backdrop for the Germany ETF (EWG), which fell 1.70%.
Equities and Sectors
Sector results tilted defensive and technology-oriented at the top and rate-sensitive at the bottom. The Healthcare ETF (XLV) led with a 1.83% gain, followed by the Technology ETF (XLK) at 1.03%. On the other side, the Utilities ETF (XLU) fell 3.07%, the Financials ETF (XLF) declined 2.39%, and the Real Estate ETF (XLRE) lost 2.07%, segments that often draw attention when interest rates move.
Country markets were mostly lower. The South Korea ETF (EWY) fell 3.93% and the Mexico ETF (EWW) declined 2.72%, while the Taiwan ETF (EWT) rose 0.67% and the China ETF (MCHI) edged up 0.21%. Trailing one-year figures remain striking in places, with EWY up 132.3% and EWT up 84.76%, underscoring how widely returns can vary across regions.
Fixed Income and Commodities
Bonds were broadly quiet on the week despite the rate decision. The U.S. Aggregate Bond ETF (AGG) was essentially flat at down 0.04%, the Intermediate Bond ETF (IEF) eased 0.23%, and the Long-Term Treasuries ETF (TLT) rose 0.47%. The Corporate Bond ETF (LQD) gained 0.35% while the High Yield ETF (HYG) slipped 0.08%. Over the trailing year, longer-duration bonds remain lower, with TLT down 5.70%.
Commodities were mixed. The Silver ETF (SLV) advanced 3.10% and the Gold ETF (GLD) rose 0.61%, while the broad Commodities ETF (DJP) added 0.38%. The REIT ETF (VNQ) fell 1.04%, consistent with the softness in rate-sensitive equity sectors.
Factors and Style
Factor strategies isolate specific traits within the market. This week momentum and growth held up best: the Momentum ETF (MTUM), which favors recently outperforming stocks, rose 1.02%, and the Growth ETF (VUG) gained 0.83%. Income-oriented approaches lagged, with the High Dividend ETF (VYM) down 2.22% and the Dividend Growth ETF (SCHD) down 1.35%. The Value ETF (VLUE) fell 1.14%, Quality (QUAL) eased 0.24%, and Low Volatility (USMV) declined 0.86%. The Equal Weight ETF (RSP), which reduces concentration in the largest names, fell 1.20%, more than the cap-weighted SPY, a sign that larger companies carried the market this week.
The style box echoed this. The Large Growth ETF (IWF) rose 0.91% while the Large Value ETF (IWD) fell 1.16%. Smaller segments were weaker across the board, with the Small Growth ETF (IWO) down 1.52% and the Small Value ETF (IWN) down 1.45%. Over the trailing year, however, VLUE is up 67.61% and IWD up 26.48%, illustrating how factor leadership can rotate over longer periods.
What This Means for Long-Term Investors
This week showed how much results can diverge beneath a roughly flat headline: growth and healthcare advanced while the Dow, small caps, utilities, and dividend strategies fell, and bonds barely moved even as the Federal Reserve raised rates. For diversified, long-term investors, that dispersion is a practical illustration of why holding a range of asset classes, sizes, and styles can smooth the experience of any single week, since the segments that lag now, such as small caps and value, are frequently among the stronger performers over the trailing year.
Performance figures reflect ETF proxies for each market segment. Weekly returns are measured from the prior week’s final close (September 11, 2026) through the September 18, 2026 close; month and year figures are anchored to the same ending close. Dates reflect actual trading sessions, so market holidays can shift them.
This commentary is provided by Rubric Advisors, a California-registered investment adviser (registration does not imply a certain level of skill or training), for informational and educational purposes only. It does not constitute investment, legal, or tax advice, is not a recommendation or offer to buy or sell any security, and should not be relied upon as the sole basis for an investment decision. Market segment performance is measured using exchange-traded fund (ETF) proxies, which reflect fund expenses and may differ from their underlying indices; figures are unaudited and drawn from third-party data believed reliable but not guaranteed. Past performance does not guarantee future results. All investing involves risk, including possible loss of principal. Options strategies are not suitable for all investors, and private market investments are available only to qualified clients.