This Weekly Financial Markets Update reviews the top market headlines: Fed Delivers First Rate Hike in Three Years, Treasury Yields Hit Multi-Year Highs, Retail Sales Rebound in August
  • The Federal Reserve raised its target policy rate to a range of 3.75% - 4.00%
  • The U.S. 10-year Treasury yield breached 5%
  • Retail sales rose 1.2% in August

Top Three Market Headlines

Fed Delivers First Rate Hike in Three Years: The Federal Reserve last week raised its key policy interest rate for the first time in three years, with the Federal Open Market Committee voting unanimously to increase the federal funds rate by 25 basis points to a target range of 3.75%-4.00%. The move followed several months of elevated inflation rates driven by higher energy prices. Updated policy projections signaled that most Fed officials expect to enact at least one additional rate increase of the same magnitude before year-end. In post-meeting remarks, Chair Kevin Warsh emphasized the Fed's commitment to returning inflation to the central bank's 2% target.

Treasury Yields Hit Multi-Year Highs: U.S. Treasury bond yields continued rising last week, reaching multi-year highs on multiple benchmark bonds. The 2-year Treasury note yield closed the week at 4.75%, up from 4.34% at the start of the month and the highest level in more than two years. The 10-year Treasury bond yield, meanwhile, breached the key 5% threshold for the first time since 2007, while the 30-year bond yield hit a 22-year high before closing the week at 5.4%. Multiple factors have pressured both the short and long ends of the yield curve this year, including expected Fed rate hikes, persistent inflation, solid economic growth, and growing concerns over the United States' fiscal condition.

Retail Sales Rebound in August: Sales at U.S. retail and food establishments rose 1.2% in August, according to the U.S. Census Bureau, after falling 0.5% in July. The sharp rebound marked the largest monthly increase in five months and was 6.0% higher than August of 2025. Spending at gas stations surged 3.1%, while sales at non-store retailers rose by 2.6% and spending in discretionary categories such as electronics and appliance stores increased 1.6%. Sales excluding gasoline stations still rose 1.1%, indicating the strong headline growth wasn't caused solely by higher gas prices. The August report indicates that consumers have remained resilient despite elevated inflation and rising interest rates.

As of September 18, 2026 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World -0.47% 1.78% 13.23% 17.70%
S&P 500 -0.06% 2.27% 12.71% 16.71%
Russell 2000 -1.47% -5.18% 16.22% 17.34%
MSCI EAFE -1.58% 1.17% 10.73% 16.62%
MSCI Emerging Markets -0.56% -0.18% 23.62% 29.55%
FTSE NAREIT Equity -1.85% -4.30% 12.76% 12.01%
Bloomberg Commodity 0.22% 19.02% 36.11% 46.03%
Bloomberg U.S. Aggregate -0.03% -2.07% -1.46% -0.44%

US Census Bureau 9/16/2026 Wsj.com 9/16/2026, CBS News, 9/16/2026, Bloomberg 9/17/2026, FactSet. Index returns from Morningstar Direct. Returns for periods greater than one year are annualized. Investment advisory services are offered by Gallagher Fiduciary Advisors, LLC ("GFA"), an SEC registered investment advisor that provides retirement, investment advisory, discretionary and independent fiduciary services. Registration as an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the SEC. GFA is a limited liability company with Gallagher Benefit Services, Inc. as its single member. GFA may pay referral fees or other remuneration to employees of Arthur J. Gallagher & Co. or its affiliates or to independent contractors; such payments do not change our fee. Neither Arthur J. Gallagher & Co., GFA, their affiliates nor representatives provide accounting, legal or tax advice. GFA does not express an investment opinion regarding any specific commodity, sector or individual security. Unless otherwise expressly noted, the contents of this communication do not constitute securities or investment advice, nor should this communication be construed as an opinion regarding the appropriateness of any investment. The information provided cannot take into account all the various factors that may affect your particular situation, therefore you should consult your GFA consultant before acting upon any information or recommendation contained herein to discuss the ability of the information/recommendation for your specific situation.