**Elevated Treasury yields and the Federal Reserve’s hawkish September policy shift weighed on equities during the week of September 28, 2026.** The central bank raised the federal funds rate 25 basis points to the 3.75–4.00% range on September 16 and signaled further tightening via its dot plot, while 10-year yields climbed toward 5.25%—their largest monthly increase since 2022—on persistent inflation and energy price pressures. Geopolitical tensions in the Middle East kept Brent crude above $96, supporting higher inflation expectations and compressing valuations. The S&P 500 drifted modestly lower in a tight range near 7,650–7,680 amid these crosscurrents, with the equal-weighted index and smaller caps showing greater weakness than megacaps. Traders monitored upcoming economic releases and any signs of policy recalibration for clues on the near-term path for rates and risk assets.