Weekly Market Performance — September 11, 2026

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

S&P 500 Index Sectors

Fixed Income

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)