Weekly Market Update – September 21, 2026
Price Return Last Week
S&P 500 (0.3%) S&P Mid Cap (1.8%) Russell 2000 (1.5%)
MSCI EAFE (1.6%) MSCI EM (0.6%)
10 Yr US Treasury Rate – rose from 4.98% to 5.00%
Source: Refinitiv Eikon
Recent News
Fed Raises Rates – The Federal Reserve chose to increase the benchmark interest rate by 0.25%, moving it from 3.50%-3.75% to 3.75%-4.00%. The rate hike was the first increase in three years and the first move made by new Fed Chairman Kevin Warsh. The decision to increase rates was unanimous, including a vote to raise cast by Warsh. President Trump critiqued the decision but did not mention Warsh by name. In addition to the hike last week, 16 of 18 policymakers shared projections that called for at least one more hike in 2026. Warsh noted following the meeting that higher prices no longer seem entirely due to increased oil costs or higher tariffs, partly explaining the rationale behind the decision. Market-based indicators see a roughly 50% chance that the Fed hikes again at their next meeting in October, just a few days before the midterm elections.
Source: Thomson Reuters
10-Year Treasury Rate Hits 5% - For the first time since 2023, the yield on a 10-year U.S. Treasury bond reached 5%. If the yield surpasses 5.02% this week, it will become the highest level the market has seen since 2007.
Source: Thomson Reuters
Europe Considers Adding Canada to European Union – European Commission President Ursula von der Leyen stated on Wednesday that she wants to consider adding Canada as the EU’s first associate member to the European Union. Citing “an openly hostile world,” von der Leyen stated that Europe needs to reimagine their partnerships. Canadian Prime Minister Mark Carney was present for the speech and responded by stating that they should consider a “more ambitious alliance in the future.” President Trump warned that adding Canada to the EU would be a “hostile act” and threatened “very serious tariffs” on European items if it comes to fruition. It remains to be seen what an “associate” membership would look like. Previously, Germany proposed adding Ukraine as an associate member but the idea never gained traction.
Source: Thomson Reuters
Reason to Celebrate – Following extreme heat and drought throughout France for much of the summer, the Comite Champagne announced that they are temporarily allowing winemakers to produce champagne with an alcohol content of up to 15%, above the traditional cap of 13%. More heat and drought tends to produce grapes with higher sugar content, which is then converted into alcohol during fermentation causing the higher alcohol content. The champagne association noted that the change is just in effect for this year and will likely impact only a small number of producers.
Source: Journal of Human Evolution
Upcoming Events
9/22 – Notable Earnings Reports: AutoZone
9/23 – S&P Manufacturing PMI, S&P Services PMI
9/24 – Trump-Xi Meeting, Notable Earnings Reports: Costco, Darden Restaurants
9/25 – Durable Goods
Source: Refinitiv Eikon
Disclosure
This material, including references to specific securities, is for informational purposes only and is not investment advice, a recommendation, or an offer to buy or sell any security. Views are as of the date shown and may change. Forecasts and forward-looking statements are not guarantees of future results. Information is believed reliable but not guaranteed for accuracy or completeness; third-party sources are not affiliated with Chesley, Taft & Associates (CTA). Indexes are unmanaged, not investable, do not reflect fees or expenses, and shown for illustrative purposes only. Past performance is not indicative of future results. Viewing this material does not create an advisory relationship with CTA.
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