Stock Market Advances as Investors Look Past Inflation to What Comes Next:
Equities advanced last week as the broad market looked past inflationary pressures and focused on falling oil prices, declining bond yields, and ongoing diplomatic efforts in the Middle East.
The S&P 500 Index rose 1.22%, while the Nasdaq Composite Index advanced 2.06%. The Dow Jones Industrial Average edged up 0.28%. The MSCI EAFE Index, which tracks developed overseas stock markets, added 0.15%.1,2
Sources: Source: Bloomberg Finance, L.P. (Performance data normalized 09/17/26 = 0)
Choppy Trading
Stocks bolted out of the gate to start the week, rebounding thanks to AI stocks, falling oil prices, and bond yields. The Nasdaq hit a record intraday high during Monday’s session.3,4
The broad market went sideways on Tuesday as traders kept an eye on developments in the Middle East, while oil prices and Treasury yields slid further.3,4
Markets then fell midweek amid investor concerns over comments from one Fed official and two inflation updates. All three major averages were under pressure. The malaise hung on into Thursday, but stocks began to climb late in the day on upbeat reports out of the Middle East.5,6
All three major averages continued their recovery Friday, ending the day with some momentum going into the close.7
Eyes on Bonds
Treasury yields hit multidecade highs last week due to a couple of factors.7
IThe first was Federal Reserve Governor Michael Barr’s hawkish language on Wednesday, suggesting he was open to another rate adjustment at the October Fed meeting. And the second was the Purchasing Managers’ Index (PMI) reports for both manufacturing and services, which were also released on Wednesday. Both reports showed costs hit four-year highs for the month.8
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System
This Week: Key Economic Data
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
Source: EarningsWhispers
Author
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1WSJ.com, September 25, 2026
2Investing.com, September 25, 2026
3CNBC.com, September 21, 2026
4CNBC.com, September 22, 2026
5CNBC.com, September 23, 2026
6WSJ.com, September 24, 2026
6WSJ.com, September 25, 2026
6WSJ.com, September 23, 2026
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