Nasdaq opens higher as markets await Fed decision

• Fed rate hike is nearly certain with 92.7% probability priced in for a quarter-point increase, plus 41% odds of another hike in October and 27% chance in December
• Oil prices eased with Brent crude falling 1.7% to $106.88 and WTI down 2.7% to $103 after Saudi Arabia offered additional crude supplies, though prices remain elevated above $100
• Tech stocks showed mixed performance with Nvidia and Meta gaining nearly 1% while the sector faces pressure from concerns about AI development pace and elevated Treasury yields near 5%

Market Summary: Fed Decision Day Drives Trading Action

Market Performance:

U.S. markets opened mixed on Wednesday, September 16, 2026, ahead of the Federal Reserve's rate decision. The Nasdaq Composite rose 0.46%, and the S&P 500 gained 0.24%, while the Dow Jones Industrial Average declined 34 points. This followed a two-day decline across major indexes.

Federal Reserve Outlook:

Markets are pricing in a 92.7% probability of a quarter-point rate hike, which would bring the target range to 3.75%-4.0% from the current 3.5%-3.75%. Futures indicate a 41% chance of another hike in October and 27% probability for December. The decision is scheduled for 2 p.m. ET, with investors closely watching Fed Chair Kevin Warsh's commentary on inflation and future policy direction.

Inflation Data:

August consumer prices rose 3.4% year-over-year, down from May's 4.2% peak but still above the Fed's target. Monthly CPI increased 0.4% as expected, while core inflation rose 0.3%, exceeding forecasts. The White House has pressured the Fed to pause rate increases.

Energy Markets:

Oil prices retreated after Saudi Arabia reportedly offered additional crude through Oman. Brent crude fell 1.7% to $106.88 per barrel, while WTI dropped 2.7% to $103. Despite the decline, prices remain above $100, contributing to inflation concerns. U.S. diesel hit record highs of $6 per gallon on Friday.

Technology Sector:

Tech stocks showed mixed performance. Nvidia and Meta gained nearly 1%, Apple rose 0.9%, while Microsoft edged lower. The sector faces headwinds from elevated Treasury yields (10-year near 5%, 30-year at 5.346%) and concerns about AI development pacing.