Options Expiration Caps Off a Wild Week 18/09/2026
Market Wrap
U.S. stocks rebounded Thursday, led by a sharp recovery in technology shares as investors looked past the Federal Reserve's return to rate hikes and refocused on the artificial-intelligence growth story.
The Dow Jones Industrial Average gained 316 points, or 0.6%, while the S&P 500 climbed 1.1%. The Nasdaq Composite outperformed with a 1.7% advance.
The rally came just one day after the Fed raised interest rates by 25 basis points and signaled that at least one more increase could follow this year, sending stocks sharply lower. Thursday's recovery suggests investors are willing, for now, to look beyond the prospect of higher-for-longer rates and persistent inflation as enthusiasm around AI and corporate earnings returns to the forefront.
Oil prices eased Friday, offering some relief from recent inflation concerns. Brent crude fell 0.9% to $103.83 a barrel, while West Texas Intermediate slipped 0.9% to $101.01 as traders weighed continued geopolitical tensions against signs that additional Saudi supply could reach global markets.
Attention now turns back to the Fed, with Governor Michelle Bowman and Kansas City Fed President Jeffrey Schmid scheduled to speak Friday. Investors will be watching for further clues on policymakers' thinking following Wednesday's unanimous rate increase and the outlook for additional tightening.
Despite Thursday's rebound, the major averages remain on course for a mixed week. The Dow is down 1.5% and heading toward a third consecutive weekly decline, while the S&P 500 is off 0.3%. The Nasdaq is the only major index currently in positive territory for the week, up 0.3%.
Oil Retreats as Saudi Supply Routes Ease Disruption Fears
Oil prices fell about 1% Friday as signs of additional Saudi crude reaching global markets helped ease immediate supply concerns, even as fresh fighting in the Middle East kept geopolitical risks elevated.
Brent crude slipped 0.9% to $103.83 a barrel, while West Texas Intermediate fell 0.9% to $101.01.
The decline came after reports that Saudi Arabia found alternative routes to deliver some crude shipments to Asian buyers through Oman, reducing fears of a more severe supply disruption following the closure of a key pipeline.
Geopolitical tensions remain a major risk, however. Fresh strikes between Saudi Arabia and Yemen's Houthis have renewed concerns that the widening conflict could threaten energy infrastructure and critical export routes.
The latest pullback therefore appears to reflect an easing of the geopolitical risk premium rather than a fundamental shift in the oil market. Traders remain particularly sensitive to developments around the Strait of Hormuz, export terminals and the restoration of Saudi Arabia's East-West pipeline.
For now, geopolitical developments are likely to remain the dominant driver of crude prices. Continued Saudi exports and progress restoring disrupted infrastructure could ease prices further, while renewed supply disruptions could quickly send the risk premium — and oil — higher again.
Stocks on the Move
- Workday (WDAY): Shares rose 5% after CNBC reported that efforts to secure financing for a potential deal to take the cloud-software company private are continuing, citing unidentified sources.
- Lucid Group (LCID): Shares jumped nearly 9% after the electric-vehicle maker's CEO said restructuring work with advisers had concluded, according to FactSet.
- SiTime (SITM): Shares rallied nearly 10% after Morgan Stanley initiated coverage with an overweight rating and a $730 price target, implying about 33% upside from Wednesday's close.
- Tower Semiconductor (TSEM): Shares gained nearly 9% after the chipmaker and privately held New Photonics agreed to high-volume shipments of laser-integrated optical engines designed for high-bandwidth, energy-efficient connectivity in AI infrastructure.
Watchlist: USO, COIN, AMD, ARM, INTC, TSEM, LCID, WDAY, MSTR, AAPL, TSLA
Key Economic Events Today
Economic Data (EST)
- 09:15 AM — USD Industrial Production
- 09:30 AM — USD FOMC Member Bowman Speaks
- 10:00 AM — USD CB Leading Index
- 11:45 AM — USD FOMC Member Schmid Speaks
Earnings
No significant earnings today.
