September 2026 Market Update

Markets adjusted to a meaningful shift in September as the Federal Reserve raised interest rates for the first time in three years, challenging the widely held expectation that rates would continue moving lower. While economic growth continued at a moderate pace, the labor market remained resilient, consumer spending held up better than expected, and inflation, though significantly improved from its peak, remained above the Fed’s long-term target. The combination of steady economic activity and persistent inflation reinforced the Fed’s commitment to maintaining restrictive monetary policy, leading investors to reassess the outlook for interest rates, bonds, and equity valuations.

In this month’s Market Update, Brian Andrew, CFA®, Chief Investment Officer at Merit Financial Advisors, discusses the Federal Reserve’s latest rate decision, the economic data driving policy changes, trends in inflation and employment, rising Treasury yields, and how higher borrowing costs are reshaping investment opportunities. He also explores the continued strength of AI and technology-related sectors, growing investor selectivity, and what third-quarter earnings season could mean for markets moving forward.

Watch the full video to learn how a higher-rate environment may create both challenges and opportunities for long-term investors.

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