US stocks weekly: Rate reckoning

Corning Incorporated

18/09/2026 21:33

    ** S&P 500  .SPX  falls second straight week, though dips just 0.1% as Fed Chair Kevin Warsh takes center stage  .N 
    ** Dow  .DJI  drops 1.7%, while tech-heavy Nasdaq Composite  .IXIC  lifts 0.7%
    ** Nasdaq gyrates, survives support test, but upside still capped
    ** Though recent breadth breakdown leaves Nasdaq bulls on alert after the Dow tested a key line in the sand ahead of Fed decision
    ** And then the S&P 500 has a bounce, not yet a breakthrough
    ** US 10-year Treasury yield  US10YT=RR  finishes around 5.00% after ascending to 19-year high ahead of the Federal Reserve's decision to hike rates  US/ 
    ** Most sectors succumb to the verdict: Interest-rate-sensitive plays like Utilities and Financials harshly judged, while Tech, Communication Services and Healthcare get a reprieve
    ** Financials  .SPSY  flop 2.3%. Big banks extend slide after Fed rate hike, Warsh press conference
    For the week, S&P 500 banks index  .SPXBK  drops ~4%, KBW regional banking index  .KRX  loses >1%
    ** Industrials  .SPLRCI  sag 1.5%. J.B. Hunt  JBHT.O  skids as higher trucking costs prompt CFO's profit warning  
    A bright spot, Generac  GNRC.N  surges after $2.4 bln deal to supply backup generators for Amazon  AMZN.O  data centers
    ** Tech  .SPLRCT  adds 1.1%. AI-related stocks including chipmakers Nvidia  NVDA.O  and Advanced Micro  AMD.O  fall on Mon after top CEOs urge slower model development amid safety worries. Optical fiber supplier Corning  GLW.N  biggest sector loser, sheds 10% on week
    This as Jefferies says AI demand remains strong, with Nvidia at the center
    Semiconductor index  .SOX  rises 0.8%; NVDA and AMD notch weekly gains of ~2% and 8.5%, respectively
    ** Communication Services  .SPLRCL  gains 1.2%. Though Netflix  NFLX.O  declines after Wells Fargo turns bearish, citing softer viewership, 'messier story'
    ** Meanwhile, AAII bearish sentiment climbs to 16-month high as optimism tumbles
    ** SPX performance YTD:
     
 Energy                       42.7%
 Tech                         24.5%
 SPX                          11.8%
 Materials                    9.5%
 Industrials                  9.2%
 Healthcare                   8.5%
 Real Estate                  5.9%
 Staples                      5.8%
 Comm Svcs                    3.1%
 Financials                   1.8%
 Utils                        -4.4%
 Discretionary                -4.4%
     

    (Lance Tupper and Terence Gabriel are Reuters market analysts. The views expressed are their own)
((lance.tupper@tr.com ; terence.gabriel@tr.com))