Peakfolio Team
Sep 22, 2025
Between September 15 and September 22, markets cooled as Federal Reserve officials signaled they may need to keep rates elevated longer than investors anticipated.
The week started on a strong note following another round of upbeat earnings, but optimism faded midweek after several Fed policymakers reiterated that inflation remains “uncomfortably high.” The S&P 500 and Nasdaq each fell more than 1% as yields pushed upward, led by the 10-year Treasury edging back toward its summer highs. Technology and consumer discretionary names led the pullback, while defensive sectors like utilities and healthcare held firm.
Despite the setback, overall sentiment remains constructive. Market participants view the weakness as a typical pre-Fed-meeting lull rather than a broader shift in trend. With economic data still pointing to resilience in jobs and spending, traders expect near-term volatility but little fundamental change to the longer-term bullish narrative.