Dow Slips 51 Points, Nasdaq Jumps 158 as Fed Eyes First Rate Hike Since 2023; Intel, SK Hynix Rally 

Mumbai, Sept 16: US stock markets opened mixed on Wednesday, 16 September 2026, with the blue-chip Dow Jones Industrial Average (^DJI) edging lower while the technology-heavy Nasdaq Composite (^IXIC) and the benchmark S&P 500 (^GSPC) advanced, as investors positioned ahead of the Federal Reserve’s pivotal interest-rate decision and the release of its quarterly economic projections later in the day.  

The mixed open followed a lower close on Tuesday, when a government bond sell-off pushed the 10-year Treasury yield above 5%, its highest level since the financial crisis, weighing on equity sentiment. The Dow had closed Tuesday at 52,093.11, down 328.09 points or 0.63%, while the S&P 500 fell 0.45% to 7,585.73 and the Nasdaq Composite dropped 0.78% to 25,981.57. 

Nasdaq Rises 158 Points as Dow Falls 51 Points Before Fed Decision 

At 9:48:02 AM EDT, the Dow Jones Industrial Average stood at 52,041.96, down 51.15 points, or 0.10%, having opened at 52,115.40 against a previous close of 52,093.11. The 30-stock index traded within a day’s range of 51,947.02 to 52,173.70, with volume of 35,013,075 shares. Its 52-week range spans 45,057.28 to 54,744.33, while average volume is 494,657,741. 

The Nasdaq Composite climbed to 26,139.17, up 157.60 points, or 0.61%, after opening at 26,108.46 from a previous close of 25,981.57. The index’s day’s range was 26,076.46 to 26,140.34, with volume of 1,816,103,000. Its 52-week range stands at 20,690.25 to 27,190.21, and average volume is 8,694,602,258. 

The S&P 500 gained 21.40 points, or 0.28%, to 7,607.13, having opened at 7,601.25 from a previous close of 7,585.73. Its day’s range was 7,597.61 to 7,609.55, with volume of 226,527,111. The 52-week range is 6,316.91 to 7,816.70, and average volume is 5,176,783,548. 

The Russell 2000 Index (^RUT) added 8.55 points, or 0.30%, to 2,878.84, opening at 2,873.75 from a previous close of 2,870.29. Its day’s range was 2,873.75 to 2,878.95, with a 52-week range of 2,303.46 to 3,069.71. 

Fed Rate Decision Today: 92% Odds of 25-Bps Hike 

The Federal Reserve’s two-day policy meeting concludes on Wednesday, with the rate decision scheduled for 2 p.m. ET (11:30 p.m. IST), followed by the release of the quarterly “dot plot” and Fed Chair Kevin Warsh’s press conference at 2:30 p.m. ET. Markets are pricing in a 25-basis-point increase with a probability of roughly 92% to 93%, according to futures data, which would mark the first rate hike since 2023. The current federal funds target range is 3.5% to 3.75%. Traders also assign about a 39% to 45% chance of another quarter-point increase at the October meeting and roughly 26% to 30% for December. 

The Fed has held rates steady since January 2026, choosing to wait to gauge the effects of energy price shocks and to let the impact of tariffs on prices ripple through the economy. At the previous meeting, three of the 12 voting members called for an immediate rate hike, dissenting from the other nine — the largest dissent since 2019.  

Also Read: How to invest in US stocks

Consumer prices rose 3.4% year-on-year in August, unchanged from the previous month but still well above the Fed’s 2% target. Core CPI increased 0.3% month-on-month, slightly more than expected, while headline CPI rose 0.4%. Inflation has now remained above the Fed’s 2% target for more than five years. 

President Donald Trump has continued to press for lower rates, stating that the US “should be paying the lowest interest rate in the world.” He has also threatened to stop trading with countries with which the US runs a deficit unless rates are lowered.  

Treasury Secretary Scott Bessent has endorsed the idea of $5,000 cheques for every American adult, estimated to cost $1.3 trillion, while saying there are ways to do so without increasing the debt or deficit. Analysts noted that if the Fed follows through with a hike, it could set up a clash with the White House. 

August Retail Sales Jump 1.2% to $773.9 Billion 

US retail sales rose 1.2% in August to $773.9 billion, rebounding from a revised 0.5% decline in July and surpassing expectations of a 0.9% increase. Excluding autos, auto parts and gasoline, sales also rose 1.2% month-on-month. Gas station sales climbed 3.1%, online retailers 2.6%, electronics and appliances 1.6%, and miscellaneous stores 1.9%. Sales were up 6% compared with the same period a year earlier. 

Import prices rose 0.7%, up from a 0.4% decline in July and ahead of estimates of a 0.4% increase. Consumer sentiment, however, deteriorated for a second consecutive month in September, as inflation worries and elevated petrol prices remained top of mind. Diesel prices in the US hit a record just under $6.27 a gallon, adding to cost pressures across transportation, farming and shipping. 

Intel, SK Hynix Rally on US Memory Chip Talks 

Intel Corporation (INTC), headquartered in Santa Clara, California, is a semiconductor manufacturer whose products include processors, chipsets and foundry services. The company’s shares advanced about 4.3% to $101.36 on Wednesday, while US-listed shares of SK Hynix (SKHY) gained roughly 3% to 5%, following reports that the South Korean memory chipmaker is in talks with Intel to manufacture its memory chips in the US for the first time. Under one possible arrangement, SK Hynix could lease part of Intel’s planned chipmaking facility in Ohio, or form a joint venture with Intel and some of its cloud customers. No decisions have been finalised, and a move to produce advanced memory chips in the US could face opposition from the South Korean government. 

Intel shares have nearly tripled in value this year, though they remain about 31% below their 52-week high. SK Hynix’s US-listed shares have climbed roughly 20% from their July initial public offering price. The broader iShares Semiconductor ETF, which has Intel as a holding, was up roughly 2%, while the Roundhill Memory ETF, which includes SK Hynix, also gained about 2%. 

Dow Movers: Honeywell Up 1.04%, IBM Down 2.72% 

Within the Dow Jones Industrial Average, Honeywell led gainers with a rise of 1.04%, followed by Nvidia at 0.96%, Apple at 0.89%, Disney at 0.78%, Cisco at 0.71%, 3M at 0.62%, Caterpillar at 0.52%, Home Depot at 0.43%, Procter & Gamble at 0.40%, Johnson & Johnson at 0.38%, Travelers at 0.36%, Merck at 0.33%, Amgen at 0.32%, UnitedHealth at 0.22%, Boeing at 0.14% and Verizon at 0.09%. 

Also Read: US Stock Market Timings 

On the downside, IBM declined 2.72%, American Express fell 2.59%, Chevron dropped 1.82%, McDonald’s slipped 0.93%, Visa lost 0.79%, Microsoft declined 0.57%, Goldman Sachs fell 0.54%, Coca-Cola eased 0.41%, Amazon declined 0.31%, JPMorgan shed 0.13%, Walmart slipped 0.08% and Salesforce edged down 0.06%. 

Nasdaq-100: Intel Up 5.21%, ARM Adds 4.39% 

Among Nasdaq-100 constituents, Intel shares led with a gain of 5.21%, followed by ARM Holdings at 4.39%, Marvell Technology at 3.87%, Advanced Micro Devices at 3.44%, Western Digital at 2.88%, Qualcomm at 1.54%, Lam Research at 1.23%, ASML at 1.17%, Texas Instruments at 1.09%, Nvidia at 1.06%, Apple at 1.02%, Meta Platforms at 0.91%, Applied Materials at 0.78%, Tesla at 0.68%, Broadcom at 0.64%, Cisco at 0.58% and Alphabet at 0.31%. Decliners included AppLovin, down 1.79%, Adobe, down 1.60%, CrowdStrike, down 1.17%, Palantir, down 0.91%, Microsoft, down 0.72% and Netflix, down 0.55%. 

In the S&P 500, Dell Technologies rose 4.60%, Western Digital gained 3.21%, Arista Networks added 3.19%, Oracle climbed 2.65%, GE Vernova advanced 1.57%, Eaton gained 1.43%, GE added 1.15%, Intuitive Surgical rose 1.14% and Eli Lilly gained 0.87%. Energy stocks were among the weakest performers, with ConocoPhillips down 3.63%, IBM down 3.07%, Exxon Mobil down 1.93%, Chevron down 1.56%, American Express down 2.68% and Bank of America down 1.45%. 

J.B. Hunt Plunges 11.72% on Q3 Profit Warning 

J.B. Hunt Transport Services (JBHT) tumbled 11.72% to $241.04 after its chief financial officer said third-quarter earnings would fall 5% to 10% sequentially, compared with analyst expectations of 9% growth. The decline was attributed to roughly $25 million in additional driver-related expenses and at least $10 million in fuel headwinds. The shares had entered Wednesday up more than 40% this year. The company, headquartered in Lowell, Arkansas, provides trucking, intermodal and logistics services across North America. 

Diamondback Energy (FANG) fell 7.32% to $196.03. Other energy decliners included ConocoPhillips, down 3.64%, EOG Resources, down 3.94%, Occidental Petroleum, down 3.66%, APA Corporation, down 4.09%, SM Energy, down 3.98%, Ovintiv, down 3.97%, Permian Resources, down 3.88%, Chord Energy, down 3.66%, Matador Resources, down 4.32%, Magnolia Oil & Gas, down 4.41%, Viper Energy, down 4.66%, Comstock Resources, down 4.68%, Talos Energy, down 3.43% and Texas Pacific Land, down 3.70%. Expedia fell more than 2.5% after a downgrade, with analysts citing a weak risk-reward profile and greater exposure to a potentially softer consumer. 

Oil Slips 2% as WTI Trades Near $103.90 

West Texas Intermediate crude futures fell nearly 2% to around $103.70 to $103.90 a barrel, while Brent crude declined 1.3% to $107.35, after sharp gains in recent sessions following the closure of a key Saudi pipeline. The pause in the oil rally offered some relief to bond markets. 

The 10-year Treasury yield, a benchmark for mortgages and corporate borrowing, was around 4.97%, after closing above 5% on Tuesday at 5.004% and touching 5.041% intraday, its highest level since 2007. The two-year yield stood at 5.409% and the 30-year at 5.372%. The US dollar index was 0.1% higher at 99.69. Spot gold rose 1.3% to $4,347.91 per ounce, while US gold futures for December delivery gained 1.3% to $4,388.80. On the Multi Commodity Exchange, the near-month gold futures contract rose ₹1,040 per 10 grams to ₹1,51,850. 

Bitcoin Below $76,000 After Senate Blocks Clarity Act 

Bitcoin fell below $76,000 to around $75,600 to $75,700, extending losses after the Senate voted 49-50 against proceeding with the Clarity Act, a regulatory framework for digital assets. Crypto-related equities, including Robinhood and Coinbase, also declined, though the losses were less severe than Tuesday’s rout. Analysts noted that if the bill becomes law, it would establish a legislative regulatory framework for how crypto markets operate, providing greater certainty for developers, innovators and traditional financial companies. 

Top Gainers: Cipher Digital Up 11.76%, AXT Adds 8.19% 

Among the market’s top gainers, Cipher Digital rose 11.76% to $16.87, AXT gained 8.19% to $62.42, Forgent Power Solutions added 8.00% to $33.87, Worthington Enterprises climbed 7.20% to $58.29, and Semtech advanced 6.63% to $160.91. 

Also Read: What Are Fractional Shares? 

Quantinuum gained 6.48% to $51.80, Bruker rose 6.22% to $59.22, Credo Technology added 6.23% to $159.75, Lumentum Holdings gained 6.60% to $894.34, Hut 8 rose 5.95% to $92.27, and Twist Bioscience advanced 6.02% to $146.42. 

TG Therapeutics gained 6.17% to $56.31, CoreWeave rose 4.85% to $84.85, Solaris Energy Infrastructure added 5.62% to $65.08, Core Scientific gained 5.42% to $16.91, Nokia rose 5.03% to $10.34, and Coherent advanced 5.23% to $285.36. 

Illumina gained 5.04% to $233.49, Adaptive Biotechnologies rose 5.13% to $28.05, United Microelectronics added 4.81% to $22.65, Applied Digital gained 4.74% to $24.53, Aurora Innovation rose 3.49% to $6.66, Tower Semiconductor advanced 4.83% to $204.53, and Dell Technologies gained 4.77% to $569.46. 

Top Losers: J.B. Hunt Slumps 11.72%, Diamondback Falls 7.32% 

J.B. Hunt Transport Services (JBHT) tumbled 11.72% to $241.04 after its chief financial officer said third-quarter earnings would fall 5% to 10% sequentially, compared with analyst expectations of 9% growth. The decline was attributed to roughly $25 million in additional driver-related expenses and at least $10 million in fuel headwinds. 

The shares had entered Wednesday up more than 40% this year. The company, headquartered in Lowell, Arkansas, provides trucking, intermodal and logistics services across North America. 

Diamondback Energy (FANG) fell 7.32% to $196.03. Telix Pharmaceuticals (TLX) declined 8.65% to $11.72. Alignment Healthcare (ALHC) dropped 6.41% to $9.71. Webull Corporation (BULL) lost 5.43% to $8.19. Pulse Biosciences (PLSE) fell 5.06% to $52.40. 

Comstock Resources (CRK) declined 4.68% to $13.64. Viper Energy (VNOM) dropped 4.66% to $43.82. Magnolia Oil & Gas (MGY) fell 4.41% to $27.29. Matador Resources (MTDR) declined 4.32% to $60.44. Bullish (BLSH) dropped 4.26% to $33.95. 

SM Energy (SM) fell 3.98% to $39.64. Clear Secure (YOU) declined 3.99% to $39.96. Ovintiv (OVV) dropped 3.97% to $64.31. BKV Corporation (BKV) fell 4.07% to $23.36. APA Corporation (APA) declined 4.09% to $45.47. 

Permian Resources (PR) dropped 3.88% to $23.39. EOG Resources (EOG) fell 3.94% to $147.68. Chord Energy (CHRD) declined 3.66% to $151.25. Texas Pacific Land (TPL) dropped 3.70% to $358.27. ConocoPhillips (COP) fell 3.64% to $136.07. 

Werner Enterprises (WERN) declined 3.67% to $36.18. Occidental Petroleum (OXY) dropped 3.66% to $61.20. Oscar Health (OSCR) fell 2.74% to $31.55. Talos Energy (TALO) declined 3.43% to $17.72. 

Costco Expands Uber Eats Delivery to 47 States 

Costco and Uber announced a national expansion of their US partnership, bringing Costco delivery through Uber Eats to customers in 47 states, up from 17. About 600 Costco locations are now available on the platform.  

Consumers can purchase a Costco membership directly through Uber Eats and receive 30% off their first eligible order. Eligible Costco members can also receive discounts on their Uber One membership. Shares of Costco and Uber ticked up slightly, by 0.25% and 0.45% respectively, in premarket trading. 

Software Stocks Outperform Chip Peers Over Three Months 

Software stocks have bounced back in recent months, with the iShares Expanded Tech-Software Sector ETF up 15% over the past three months and more than 40% higher from its April lows. Among individual movers, Microsoft and Palantir are both up 30%, while Salesforce has risen more than 50% since mid-June. In comparison, the iShares Semiconductor ETF is down 17% over the three-month period. Analysts noted that customising artificial intelligence tools for businesses requires software, supporting demand for the sector. 

Historical Patterns Show Recovery After First Rate Hike 

Analysts note that the S&P 500 has declined by an average of 4.0% over the six weeks following the first Fed rate hike of a cycle across seven such episodes since 1988. Stocks recovered all of those losses over the next five to six weeks on average. In the six months following the first interest rate hike, the S&P 500 returned 4.0% on average, and after 12 months, the average gain was 9.0%. Positive returns have occurred in every episode except 2022 over the twelve months. 

Analysts said they expect the S&P 500 to fall to 7,400 by the end of the year, above their previous target of 7,100 but still representing downside from Tuesday’s closing level. Their 12-month target of 7,800 would suggest modest upside. They cited a seasonally weak period, stubborn inflation and expectations of interest rate hikes as reasons for caution in the near term, while remaining bullish on the longer-term outlook amid a solid consumer and jobs environment. 

Analysts said higher rates have already pressured valuations and were increasingly putting equity portfolios at risk. They noted that the approaching 5% threshold in 10-year yields marks a historically important inflection point, beyond which rates have typically become a more persistent headwind for equities. Some analysts also noted that if the Fed holds rates steady, it could surprise markets and damage the central bank’s credibility, reigniting concerns that it is caving to political pressure. 

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