Asset Management Weekly Market Commentary

Market updates for the week ending
September 11, 2026

Key observations

• U.S. stocks faced tough sledding throughout the course of the holiday-shortened week as a combination of rising energy prices and Treasury yields weighed on sentiment and risk appetite. Within the S&P 500, energy was the only sector to close out the week with a gain, while economically sensitive sectors such as consumer discretionary, financials, and industrials, along with health care were weak. Encouragingly, information technology closed the week with only a 1% loss and outperformed the broader S&P 500 despite the back-up in Treasury yields, lending some credence to the idea that sometimes offense is the best defense.
• The upheaval in cyclically oriented pockets of the market, including small cap stocks, shouldered a greater decline than the broader equity market last week as the combination of rising input costs and expectation of tighter monetary conditions resulting for the worst week for the S&P Small Cap 600 since mid-May.
• Treasury yields across the curve rose over the balance of the week as an ‘underwhelming’ $6B buyback announcement, higher energy prices, and August inflation data joined forces to spur selling in higher quality bonds. The 10-year Treasury yield jumped by over 15 basis points on the week to close at 4.96%, the highest level seen since May of 2024, and we will be watching to see if buyers’ step in as the yield approaches a key round number of 5%. The FOMC meets next week and following ‘hot’ August inflation data, the futures market has the likelihood of a rate hike at over 85%. A rate hike might help put a cap on long-term yields, but higher energy prices and concerns surrounding demand for Treasuries will likely persist and limit potential downside for yields in the near-term.

What we're watching this week

• The Federal Open Market Committee (FOMC) concludes its two-day meeting on Wednesday. The futures market is placing around an 85% probability on a 25-basis point rate hike with the likelihood rising late last week on the heels of ‘hotter’ wholesale and consumer inflation readings from August.
• Control group retail sales for August are released on Wednesday and are expected to rise 0.4% month over month after falling 0.4% in July.
• August Industrial Production is released Friday and is expected to rise 0.3% month over month, which compares to a 0.2% rise in July.