Opening Comment — Thursday, September 17, 2026
DJIA: 51,461.90, down 631.21
S&P 500: 7,551.81, down 33.92
NASDAQ: 25,978.43, down 3.14
Stocks higher following yesterday’s rate hike
Stock futures are higher Thursday morning as markets digest yesterday’s Federal Reserve (Fed) rate hike. Investors are also looking forward to today’s release of the latest unemployment claims and August housing data. As of 7:15 AM ET, the Dow and the S&P 500 Index are both rising 0.8%. The Nasdaq 100 is increasing 1.1% relative to fair value on the GLOBEX.
U.S. equities were mostly lower on Wednesday as the Federal Open Market Committee (FOMC) raised its benchmark interest rate by 25 basis points (0.25%) to a target range of 3.75% to 4.00%. Fed Chair Kevin Warsh emphasized that policymakers are not satisfied with the current pace of inflation. That sentiment was also reflected in the updated Summary of Economic Projections, with most policymakers forecasting at least one additional rate hike this year. Retail sales increased more than expected in August, rising 1.2% month-over-month (MOM). Meanwhile, import prices also exceeded forecasts, climbing 0.7% MOM and 7.0% year-over-year (YOY), while export prices rose 0.6% MOM and 8.6% YOY. Meanwhile, homebuilder sentiment fell more than expected in September. The Dow was down 1.2%, while the tech-heavy Nasdaq Composite was little changed. The S&P 500 decreased 0.5% with eight of 11 sectors finishing in negative territory. The Information Technology sector was the top performer, rising 0.1%, while the Energy sector was the bottom performer, falling 3.0%.
On the data front, the Philadelphia Fed will release their September Manufacturing Business Outlook Survey, with the diffusion index of current general activity forecasted to fall to 32.1 from the prior month’s 47.4. Initial jobless claims for the week ending September 12 are expected to come in at 207,000, higher than the prior week’s 206,000, while continuing claims are expected to rise slightly to 1.779 million for the week ending September 5 from the prior week’s 1.774 million. Housing starts are expected to have been an annualized 1.32 million in August versus the prior month’s 1.24 million. The preliminary reading of August building permits is expected to come in at an annualized 1.408 million versus the prior month’s 1.433 million. Pending home sales for August are expected to have declined 0.1% MOM and 3.9% YOY, versus the prior month’s decreases of 2.3% and 2.5%, respectively.
Across the pond, European stocks are higher in mid-day trading following the Bank of England leaving its benchmark interest rate unchanged at 3.75%, though adjusting its quantitative tightening program. The eurozone’s finalized Consumer Price Index reading for August was revised lower, with headline inflation only rising to 3.2% YOY, while the MOM rate remained unchanged from the preliminary reading of 0.4%.
Overnight in Asia, stocks were mixed as attention is shifting to tomorrow’s Bank of Japan policy decision, where policymakers are widely expected to raise interest rates by 25 basis points (0.25%) to 1.25%. Japan's condominium sales in Tokyo declined 12.4% YOY in August, reversing the 6.9% increase recorded in the prior month.
In FOREX trading, the U.S. dollar is slightly lower following the Fed’s latest rate hike.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 1.8% lower at $100.61/barrel following a smaller-than-expected decline in reported U.S. crude oil inventories.
In the metals complex, gold is 1.4% higher at $4,322.44/ounce following a weakening U.S. dollar.