LPL Research provides its Weekly Market Performance for the week of September 7, 2026. U.S. and international stocks struggled during the holiday-shortened week as rising oil prices and higher bond yields weighed on sentiment amid escalating Middle East tensions. In the U.S., the S&P 500 suffered four straight daily losses before reversing higher on Friday after the Consumer Price Index (CPI) report, while energy outperformed and small caps lagged. European markets were pressured by higher energy costs and another European Central Bank (ECB) rate hike, though shares rebounded late in the week as bond markets steadied. Asian markets were mostly lower, with weakness in Japan ahead of a likely Bank of Japan rate hike, as well as China and Hong Kong. Bond prices fell as yields climbed, though strong U.S. Treasury auction demand helped spark a modest late-week rally that held after the CPI report.
Stock Index Performance
| Index | Week-Ending | One Month | Year to Date |
| S&P 500 | -0.70% | -0.82% | 11.96% |
| Dow Jones Industrial | -1.42% | -2.11% | 9.56% |
| Nasdaq Composite | -0.52% | -0.29% | 13.45% |
| Russell 2000 | -2.22% | -3.88% | 17.23% |
| MSCI EAFE | -1.45% | -1.21% | 11.19% |
| MSCI EM | -1.21% | 3.73% | 24.05% |
S&P 500 Index Sectors
| Sector | Week-Ending | One Month | Year to Date |
| Materials | -2.56% | -3.65% | 11.76% |
| Utilities | -1.24% | -2.89% | -0.93% |
| Industrials | -1.54% | -7.21% | 11.03% |
| Consumer Staples | -0.55% | -1.48% | 6.73% |
| Real Estate | -0.89% | -1.17% | 4.22% |
| Health Care | -3.45% | -1.56% | 6.72% |
| Financials | -1.52% | -1.11% | 4.22% |
| Consumer Discretionary | -1.30% | -5.01% | -3.09% |
| Information Technology | 0.00% | 1.19% | 23.41% |
| Communication Services | 1.42% | 1.56% | 2.31% |
| Energy | 1.99% | 6.37% | 44.41% |
Fixed Income
| Indexes and Commodities | Week-Ending | One Month | Year to Date |
| Bloomberg US Aggregate | -0.92% | -0.97% | -1.31% |
| Bloomberg Credit | -0.85% | -0.90% | -1.44% |
| Bloomberg Munis | -1.36% | -2.81% | -1.68% |
| Bloomberg High Yield | -0.58% | -0.37% | 1.97% |
| Oil | 9.12% | 19.98% | 73.84% |
| Natural Gas | -5.58% | 1.52% | -23.79% |
| Gold | -1.52% | -0.17% | 1.00% |
| Silver | -2.64% | -0.34% | -10.05% |
Source: LPL Research, Bloomberg 9/11/26 @ 1:00 p.m. ET
Disclosures: Indexes are unmanaged and cannot be invested in directly.
U.S. and International Equities
U.S. Equities: U.S. stocks were down for the holiday-shortened week on escalating Mideast tensions, but pared losses during Friday’s session after a relief rally on a slightly disappointing CPI report that seemingly locked in a rate hike by the Federal Reserve (Fed) next week. The market’s risk-off tone was reflected in outsized losses for the Russell 2000, although the artificial intelligence (AI) trade held up relatively well as the tech-heavy Nasdaq suffered only a small fractional weekly loss. Rising oil prices and higher Treasury yields amid escalating tensions in the Middle East weighed on investor sentiment, as the S&P 500 recorded four consecutive losing sessions before stabilizing on Friday. Brent crude eclipsed $100 per barrel, fueling inflation concerns and pushing the 10-year Treasury yield toward 5%, which pressured equity valuations. Energy was the standout sector to the upside on higher oil prices, while healthcare and materials lagged.
International Equities: European equities were pressured for much of the week by the same forces affecting global markets: rising energy prices, higher bond yields, and expectations for tighter monetary policy. The ECB delivered another rate hike and warned that inflation risks remain elevated even as economic growth slows, setting markets up for additional hikes. Economic data were mixed, including stronger-than-expected U.K. growth and softer outlooks from France and the broader European Union. By week’s end, European shares recovered some ground as oil prices fell and investors grew more optimistic that the global bond sell-off may be nearing an end.
Asian stock markets generally moved lower during the week, reflecting concerns about rising oil prices, higher global interest rates, and a slowing risk appetite. Japan was among the region’s weakest performers, ahead of a likely Bank of Japan rate hike against a backdrop of rising domestic bond yields and a rebounding yen. Chinese, Taiwanese, and Hong Kong equities also struggled, with AI-related shares in China facing particular pressure. Korea’s KOSPI was a standout performer to the upside on strength in memory chip makers. Economic data across the region was mixed, including stronger Chinese trade activity and improving Japanese economic growth, but these developments were overshadowed by concerns about inflation and central bank tightening.
Fixed Income, Currency, and Commodity Markets
Fixed Income: Core bonds, as measured by the Bloomberg Aggregate Index (Agg), traded lower this week despite a temporary reprieve in yields on Friday from the recent upward pressure, which we wrote about in our September 8 Weekly Market Commentary. The decline in yields on Friday was driven by a drop in market-implied inflation expectations, as markets priced in nearly a 90% chance of a rate hike at next week’s Fed meeting. Thus, the Treasury rally reflects a vote of confidence of sorts in the Fed’s inflation-fighting credibility.
Treasury Secretary Scott Bessent’s buyback announcement this week landed as a bust relative to expectations. Markets had been leaning toward something closer to $10 billion after weeks of activist rhetoric. Treasury instead printed a $6 billion maximum for Thursday’s 10- to 20-year operation, triple last month’s size but well short of the “shock and awe” markets were expecting.
But higher yields did what official words could not. Once the 10-year and 30-year became cheap enough, real-money buyers showed up for Wednesday’s $39 billion 10-year auction and Thursday’s $22 billion 30-year auction with both auctions the strongest in years. That is the market clearing at a higher rate, which is exactly how the market is supposed to work.
Supply is enormous; oil is back over $100, and fiscal arithmetic is not going away. Price found the bid. Policy theater did not. The irony is that the intervention created the headline it meant to prevent. A $6 billion operation is a rounding error against a debt stock above $40 trillion, and deficits projected north of $2 trillion annually, so it was never going to set the level of long rates. The squeaky wheel gets the grease, but it also gets the whole garage to come over and inspect what is wrong with it. Say nothing, and this week’s auctions are routine auctions. Say something and they become a referendum on the deficit.
Commodities and Currencies: The broader commodity complex rallied this week and reached record-high territory. Energy components led the charge, with Brent Crude oil climbing over 8% and reaching a four-month high. Supply concerns intensified after Saudi Arabia’s East-West pipeline suffered drone attacks and Houthi rebels gained further ground in controlling the Bab el-Mandeb Strait, a critical chokepoint for oil exiting the Red Sea. Outside of energy, metals were mostly lower after facing headwinds from rising rates. Gold fell nearly 1%, though it managed to recover part of its losses late in the week. Copper declined almost 2% after reaching new highs intraweek. Profit-taking from overbought conditions, combined with continued delays in a White House decision on refined copper tariffs, contributed to the pullback.
Currency markets were dominated by strength in the Japanese yen. Expectations for a Bank of Japan rate hike next week increased following a series of hawkish comments from policymakers, with some signaling that further tightening may be necessary. The prospect of higher Japanese rates added pressure to the popular yen-carry trade and fueled short covering. The U.S. dollar ended the week little changed after finding support near its August lows.
Economic Weekly Roundup
This week’s CPI report came in hotter than expected, and the hawks may become the majority. But should the Fed hike?
- Core consumer prices rose 0.3% from the previous month, keeping annual inflation up at 3.4%. This monthly pace is hotter than normal. We should consistently be getting a 0.1% – 0.2% rise if we want to make the case for price stability.
- Used vehicle, airfare, hotel, and communication prices all contributed to the rise in core inflation this month. The difficult issue here is the boomers who are traveling and eating out won’t cut demand just because the fed funds rate rose by 25 basis points. The economy may be less interest rate sensitive, which can be a blessing and a curse.
- Restaurant spending, a discretionary item, was up 3.4% from a year ago. Again, here’s another category supported by spenders less sensitive to interest rates.
Bottom Line: Markets expect the Fed to raise rates by 25 basis points next week, but the impact may be muted. A growing share of economic activity is less interest-rate sensitive, much as it was during the 2022–23 hiking cycle. With AI investment surging and boomers and affluent consumers continuing to spend on travel, demand could remain resilient despite tighter policy. As a result, nominal economic growth will remain above 6% over the next few quarters, supporting business revenue.
The Week Ahead
The following economic data is slated for the week ahead:
- Monday: No major economic data
- Tuesday: ADP Weekly Employment Change, Empire Manufacturing
- Wednesday: MBA Mortgage Applications, New York Fed Services Business Activity, Retail Sales (Aug), Import Price Index (Aug), Business Inventories, NAHB Housing Market Index, FOMC Rate Decision
- Thursday: Philadelphia Fed Business Outlook, Initial Jobless Claims, Initial Claims 4-Wk Moving Avg, Continuing Claims, Housing Starts (Aug), Building Permits (Aug), Pending Home Sales (Aug)
- Friday: Industrial Production (Aug), Manufacturing Production (Aug), Capacity Utilization (Aug), Leading Index (Aug)
Important Disclosures
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk.
Indexes are unmanaged and cannot be invested into directly. Index performance is not indicative of the performance of any investment and does not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.
This material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
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Asset Class Disclosures –
International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
Bonds are subject to market and interest rate risk if sold prior to maturity.
Municipal bonds are subject and market and interest rate risk and potentially capital gains tax if sold prior to maturity. Interest income may be subject to the alternative minimum tax. Municipal bonds are federally tax-free but other state and local taxes may apply.
Preferred stock dividends are paid at the discretion of the issuing company. Preferred stocks are subject to interest rate and credit risk. They may be subject to a call features.
Alternative investments may not be suitable for all investors and involve special risks such as leveraging the investment, potential adverse market forces, regulatory changes and potentially illiquidity. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.
Mortgage backed securities are subject to credit, default, prepayment, extension, market and interest rate risk.
High yield/junk bonds (grade BB or below) are below investment grade securities, and are subject to higher interest rate, credit, and liquidity risks than those graded BBB and above. They generally should be part of a diversified portfolio for sophisticated investors.
Precious metal investing involves greater fluctuation and potential for losses.
The fast price swings of commodities will result in significant volatility in an investor’s holdings.
This research material has been prepared by LPL Financial LLC.
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