Markets News, Sep. 18, 2026: Why the Stock Market Is Down Today

The Nasdaq Composite and the S&P 500 finished higher on Friday, Sept. 18, 2026, while the Dow Jones Industrial Average slipped and small-cap stocks fell. The Nasdaq rose 0.4% on the day, the S&P 500 gained 0.2% and the Dow lost 0.2%. The Russell 2000 ended the session lower. The split close left the week’s losses in place for two of the three major indexes. The Dow fell 1.7% over five sessions for its third straight weekly loss. The S&P 500 slipped 0.1% for its second losing week in a row. The Nasdaq rose 0.7% for the week.

The week’s main driver was the Federal Reserve’s decision on Wednesday to raise interest rates for the first time in three years. Policymakers also pushed back their forecast for when inflation will return to the 2% target. The 10-year Treasury yield climbed to 5% in late-afternoon trading on Friday. Oil prices held near $100 a barrel because of the war in Iran, and futures markets priced in more rate increases.

On Friday, nearly every sector traded lower at midday, with energy the exception. Semiconductor stocks gained, and crypto-linked shares rallied after new Securities and Exchange Commission rules. Company news produced the sharpest declines: Netflix fell after a Wells Fargo downgrade, Xenon Pharmaceuticals dropped after pausing trial enrollment, and SpaceX slid after a Starship launch delay. Berkshire Hathaway announced that Warren Buffett is stepping down as chairman.

Major Indexes End Mixed for the Week

The Dow and the S&P 500 closed lower for the week again. The Dow’s 1.7% weekly drop extended its losing streak to three weeks, and the S&P 500’s 0.1% decline marked its second straight losing week.

The Nasdaq avoided a streak. It had closed lower the previous week and rebounded 0.7% over the past five sessions, helped by semiconductor stocks.

For the year to date, the Nasdaq is up about 14%, the S&P 500 about 12% and the Dow about 8%. All three indexes last posted weekly losses in the same week in mid-July, as covered in our July 17 market report.

Fed Raises Rates for the First Time in Three Years

On Wednesday the Federal Open Market Committee raised its benchmark rate by a quarter of a percentage point to a range of 3.75% to 4%. It was the Fed’s first rate increase in three years and reversed the direction of policy. The central bank said the move was aimed at blunting consumer price increases that have run faster than usual.

Attention has since shifted to how many more increases will follow. According to the CME FedWatch tool, traders on Friday saw a 55% chance that the Fed would raise rates another quarter point above the new range at its late-October meeting. They put the odds of at least one more quarter-point increase by December at 90%.

Small caps fell on Friday as rate expectations moved higher. The Russell 2000 declined on the day. The Dow also finished lower, down 0.2%, closing out its 1.7% weekly drop.

Fed Pushes Its 2% Inflation Target Back to 2029

The Fed’s updated economic projections, released alongside Wednesday’s decision, moved the expected return to target later. Fed officials now expect inflation, measured by the Personal Consumption Expenditures (PCE) price index, to fall to the central bank’s 2% annual goal in 2029. The committee’s June projections had pointed to an earlier date.

Officials revised their forecasts after data showed PCE inflation at 3.7% in July, well above the 2% target. Diesel prices have surged to record highs as the war in Iran disrupts oil supplies, raising transport and production costs across the economy. This is the sixth time since 2021 that the Fed has pushed back the date it expects to reach 2% inflation.

The 2029 projection is the median of FOMC participants’ forecasts. Fed Chair Kevin Warsh has not taken part in the projection exercise so far in his tenure, so the figure reflects the forecasts of the other participants. Historical data on price increases are in our U.S. inflation rate by year table.

Energy Was the Only Sector Higher at Midday

Selling was broad during the session even though the index moves were small. Around noon ET, the S&P 500 was down 0.2%. At that point energy was the only one of the 11 S&P 500 sectors trading in positive territory, up 0.2%. Information technology hovered near flat, and the other nine sectors were lower. Materials was the worst-performing sector at midday, down 1.4%.

The S&P 500 recovered in the afternoon and closed up 0.2%, helped by gains in semiconductor stocks. Our S&P 500 index page tracks the index’s longer-term performance.

Chip Stocks Keep the Nasdaq Positive

Semiconductor stocks accounted for much of the Nasdaq’s gain on the day and the week. Roundhill’s Memory ETF (DRAM) gained nearly 3%, and the broader iShares Semiconductor ETF (SOXX) rose almost 2%. Both funds added to gains from Thursday.

Chip stocks have swung sharply this year on changing expectations for artificial intelligence spending, including the July 16 sell-off tied to AI spending concerns and the Aug. 25 chip rebound.

The largest technology companies did less for the indexes on Friday. The Roundhill Magnificent Seven ETF (MAGS) fell about 0.5% after closing up nearly 2% on Thursday.

Netflix Slides After Wells Fargo Downgrade

Netflix (NFLX) was among the biggest decliners in both the S&P 500 and the Nasdaq. Shares closed down nearly 5% at below $72, extending a recent slide, after Wells Fargo cut its rating on the stock to “underweight” from neutral.

Wells Fargo lowered its price target to $57 from $80. The new target is the lowest on Wall Street and far below the consensus target of $97. Of the 14 other analysts tracked by Visible Alpha, 12 rate the stock a buy and two rate it neutral.

The downgrade centered on engagement. In a Friday note to clients, Wells Fargo called recent engagement trends “worrying.” It said viewing time per subscriber per day fell 8% in the first half of this year compared with the same period in 2023. Netflix “has lacked big original series & it’s showing,” the analysts wrote.

The bank said Netflix may need a “content spend reboot.” It also warned that the company’s push into other kinds of entertainment, such as games, could come at the risk of “missing the watercooler originals,” the widely discussed shows that drive subscriber attention.

Concerns about slowing revenue growth had already weighed on the stock in recent months. Including Friday’s drop, Netflix shares have lost nearly 25% of their value since the start of the year.

Xenon Pharmaceuticals Plunges on Trial Enrollment Pause

Xenon Pharmaceuticals (XENE) fell about 30%, the steepest decline among the day’s notable movers. The company, based in Boston and Vancouver, British Columbia, said it had put in place a voluntary pause on enrollment of new patients in its ongoing clinical studies in major depressive disorder (MDD) and bipolar depression (BPD).

Xenon said the pause followed an analysis of neuropsychiatric adverse events in those studies. The company said it expects the pause to be temporary and that patients currently enrolled in the studies remain active. It did not give a date for resuming enrollment.

The drop erased the stock’s gains for the year. After Friday’s decline, Xenon shares are lower for 2026.

SpaceX Shares Retreat on Starship Delay

Shares of Space Exploration Technologies (SPCX), known as SpaceX, were down roughly 2.5% late in Friday’s session, ending a two-day rally. On Thursday, the Elon Musk-led rocket, connectivity and AI company had pushed back the launch of the 14th Starship flight.

SpaceX now plans to launch as soon as Sept. 28, with a 75-minute window opening at 7:15 a.m. Central time. The new date is six days later than the original launch date, which the company announced earlier in the week.

That original announcement had lifted the stock 8% over the previous two sessions, and Friday’s decline reversed part of the gain. With an hour left in trading, shares were changing hands just under $151. That was barely above the $150 level at which the stock opened in its June 12 trading debut.

Crypto Stocks Rally With Bitcoin

Cryptocurrency-linked stocks were among Friday’s strongest performers, tracking a rise in bitcoin. Robinhood Markets (HOOD), Coinbase Global (COIN) and Strategy (MSTR), the largest single corporate holder of bitcoin, all closed at least 9% higher.

In late-morning trading, those three stocks and stablecoin issuer Circle (CRCL) were up between 7.5% and 12%. Bitcoin traded around $80,900 at that point. By late in the day it stood near $81,200, up sharply from overnight lows around $76,200.

The rally followed new rules for the crypto industry that the Securities and Exchange Commission issued on Thursday, which gave the sector some relief. The SEC’s action suggested that individual federal agencies are preparing to fill existing regulatory gaps on their own while federal crypto legislation remains stalled in Congress.

Lennar Says Homebuyers Are “Clearly Stretching”

Lennar (LEN), one of the largest U.S. homebuilders, reported earnings on Thursday. On the earnings call, CEO Stuart Miller said many homebuyers are “clearly stretching to try to afford the stability of a home,” according to a transcript of the call.

Miller said the typical buyer is now spending well above 30% of gross income on a home. He pointed to rising mortgage rates and higher home prices in a market that still has a persistent shortage of housing.

In the current environment, Miller said, fewer families “can afford to both produce a down payment and qualify for a mortgage.”

Mortgage rates have climbed in recent months as Treasury yields spiked on worries about the conflict in the Middle East and on rising interest rates aimed at controlling inflation. As the war in Iran drags on and disrupts oil supplies, higher fuel costs have pushed up prices across a wide range of goods, weighing on consumers.

On Holding Jumps on Its Move Into Soccer

On Holding (ONON), the Swiss sneaker maker best known for running shoes, jumped 6% before the opening bell after announcing it is entering the football (soccer) market. Its first major signing is Kylian Mbappé, the Real Madrid and France forward and a longtime Nike (NKE) athlete.

On said Mbappé will work directly with its product teams, contributing to the development and testing of future football footwear and apparel. He will also become a global ambassador for On, with the partnership extending beyond football into movement, performance and contemporary design.

Financial terms were not disclosed. The Athletic reported that Mbappé received equity in the company. Swiss tennis great Roger Federer, also a former Nike endorser, was granted equity in On in 2019.

On also named Thierry Henry, the retired Arsenal and Barcelona star and, like Mbappé, a World Cup winner with France, as its Director of Football. The company said Henry has been working behind the scenes on every aspect of its entry into the sport and its product approach since late 2025. Sydney Schertenleib, who plays for Barcelona and Switzerland, will help shape products for the women’s game, On said.

The stock entered the day down more than 40% for the year.

Apple Begins Sales in First Launch Under New CEO

Apple (AAPL) began selling its newest products on Friday, a week after unveiling them at its annual launch event. The iPhone 18 Pro and Pro Max, Apple Watch Series 12 and Ultra 4, and AirPods 5 are now available in Apple stores.

The foldable iPhone Duo, the other product announced last week, does not go on sale until Oct. 23. The base iPhone 18 is not expected to be revealed until next spring.

The rollout is Apple’s first major test since John Ternus took over as CEO at the start of the month. Apple shares were little changed before the open and entered the session trading within 1% of their July record high. They finished 0.3% lower.

Warren Buffett Steps Down as Berkshire Chairman

Berkshire Hathaway (BRK.B) announced Friday morning that Warren Buffett, who turned 96 last month, is stepping down as chairman effective immediately. Berkshire named him chairman emeritus in recognition of his contributions to the company and its owners, and he will remain on the board. His son Howard Buffett, a Berkshire director since 1993, was elected chairman.

In a letter to shareholders, Buffett wrote that serving as chairman “has been the privilege of a lifetime” and that he had never taken shareholders’ trust for granted. “Father Time always wins,” he wrote, adding that time had been generous with him and had let him see Berkshire reach a point where he is more confident than ever about its future.

CEO Greg Abel said in a release that the culture and values Buffett built will remain at the heart of Berkshire, and that Howard will be their guardian. Abel took over the top executive job from Buffett at the start of the year, ending Buffett’s 60-year tenure leading the conglomerate.

Under Buffett’s leadership, Berkshire shares produced average annual returns of nearly 20%, roughly double the gains of the S&P 500 over the same period. Shares rose less than 1% on Friday and are up about 1% for the year.

Other Markets: Yields, Oil, Dollar and Gold

The 10-year Treasury yield was at 5% in late-afternoon trading, up seven basis points from Thursday’s close. Two forces have pushed yields higher: concern about the conflict in the Middle East, which has lifted inflation expectations through energy prices, and the Fed’s decision to resume rate hikes. The 10-year yield feeds into rates on mortgages, corporate bonds and other loans.

Oil prices fell on Friday. West Texas Intermediate, the U.S. benchmark, dropped 2% to just under $100 a barrel around 4 p.m. ET. Brent crude futures, the international benchmark, slipped 1.5% to $103.25. Traders concluded that a pipeline closure in Saudi Arabia would not disrupt crude supplies for long. Prices have stayed near $100 a barrel because of the war in Iran.

The U.S. dollar index edged lower to 100.20. Gold futures rose 0.5% to $4,420 an ounce.

What’s Next

The Fed’s next policy meeting is in late October. As of Friday, futures markets put the odds of another quarter-point hike at that meeting at 55% and the odds of at least one more quarter-point increase by December at 90%.

SpaceX plans to launch the 14th Starship flight as soon as Sept. 28, with a 75-minute window opening at 7:15 a.m. Central time. Apple’s foldable iPhone Duo goes on sale Oct. 23. Xenon Pharmaceuticals has said it expects its enrollment pause to be temporary.