Monday, September 21, 2026

U.S. equities kicked off the week with a powerful rally as easing geopolitical tensions and retreating Treasury yields fueled risk-on sentiment. The tech-heavy Nasdaq led the charge, surging 2.26% to 27,122.094, while the S&P 500 climbed 1.49% to 7,764.7 and the Dow Jones added 0.71% to finish at 52,048.83. The small-cap Russell 2000 gained 0.52% to 2,875.36, and the VIX edged up slightly by 0.41% to 14.87 as markets digested last week's proactive 25bps rate hike by the Fed, which helped push the 10-year Treasury yield down to 4.95%.

Sectors in focus:

• Aerospace & Defense: Guided Missiles & Space Vehicles (+6.71%) and Search & Navigation Systems (+4.00%) topped the leaderboard. Honeywell and Kratos announced key milestones in cruise missile propulsion amid high global demand to replenish defense stockpiles.
• Tech & AI: The Nasdaq's outperformance was anchored by an AI tech rebound, notably Meta Platforms, which jumped 7.09% following a Wells Fargo price target hike to $796.
• Energy & Precious Metals: WTI Crude plunged 4.25% to $92 per barrel after President Trump signaled an openness to meeting Iranian President Pezeshkian at the UN, unwinding geopolitical risk premiums. This dragged down Petroleum Refining (-3.32%) and Crude Petroleum & Natural Gas (-2.21%). Gold fell 1.02% to 4,379.8 as safe-haven demand waned, sending Gold and Silver Ores 2.06% lower.

On the radar:

• Sep 22: Richmond Fed Manufacturing Index and speeches from the Fed's Williams and Jefferson.
• Sep 23: Flash Global PMIs (Manufacturing & Services) and the Meta Connect 2026 event.
• Sep 24: The highly anticipated Trump-Xi Summit in New York and Costco (COST) Q4 earnings.
• Sep 25: Durable Goods Orders and the final University of Michigan Consumer Sentiment reading.
• Oct 07: FOMC Meeting Minutes release.