Global Weekly Equities Report - September 18, 2026

Executive Summary

Reporting period: Monday 14 – Friday 18 September 2026.

The Federal Reserve raised rates for the first time in three years and the market answered by hiding in six stocks. The FOMC voted unanimously on Wednesday to lift the funds range 25 basis points to 3.75–4.00%, and the dot plot was harder than the decision: sixteen of eighteen participants expect at least one further increase, with the median holding 4.00–4.25% through the end of 2027. The ten-year Treasury closed the week at 5.00%, its highest since 2023.

The index-level response looks almost benign and is not. The S&P 500 fell 0.08% and the Nasdaq rose 0.72%, but the equal-weighted S&P 500 lost 1.27%, small caps 1.07% and the Dow 1.69%. That 2.0 percentage point gap between the cap-weighted and equal-weighted index in a single week is the widest of the year. Only Information Technology rose meaningfully, at 0.81%; Utilities fell 1.40% and Materials 1.10%.

The other two central banks pulled in opposite directions. The Bank of England held at 3.75% on a 6–3 vote with three members already voting to hike, leaving November live. The Bank of Japan did hike, 25 basis points to 1.25% and the highest since 1995, but split 7–2 and Governor Ueda declined to commit to more. The yen fell 2.13% on a rate rise, which is why the Nikkei gained 1.57% while Europe fell across the board.