WEEKLY MARKET RECAP – September 25, 2026

The recent rise in borrowing costs intensified as falling bond prices pushed yields higher, with long-term U.S. government debt reaching levels not seen in two decades. At Friday’s close, the 10-year U.S. Treasury yield stood at 5.16%, up from 5.01% the previous week. The 30-year yield was 5.49%, while the 2-year yield reached 4.85%.

The NASDAQ reached a record high on Tuesday, surpassing its previous peak from early June, before retreating modestly on Wednesday. By Friday’s close, the NASDAQ had gained 2.1% for the week, while the S&P 500 and Dow advanced 1.2% and 0.3%, respectively.

Signs of easing tensions in the Middle East pushed oil prices lower, with U.S. crude trading at roughly $92 per barrel Friday afternoon. As recently as September 15, oil had reached $106, while the year-to-date high was $113 in early April.

Recent volatility in bond markets has spread beyond the United States, with government bond yields in several major developed economies reaching multi-year highs amid concerns over inflation and interest rates. On Friday, 10-year government bond yields stood at 5.36% in the United Kingdom, 3.60% in Germany, and 3.07% in Japan. By contrast, China’s 10-year government debt yielded 1.69%, slightly lower for the week and well below levels in most other major economies.

For the second consecutive week, a U.S. large-cap growth benchmark significantly outperformed its value-oriented counterpart, further narrowing value’s still-substantial year-to-date performance advantage. The growth index gained 2.4% for the week, while the value index was essentially unchanged.

The U.S. dollar extended its recent gains in global currency markets following the first U.S. interest rate increase in three years. As of Friday afternoon, the dollar was up 0.6% for the week against a basket of major foreign currencies and 2.3% above its recent low on September 9.

Inflation concerns and the Fed’s latest rate hike continued to pressure the U.S. housing market, with the average 30-year fixed mortgage rate moving above 7.00%. Freddie Mac reported Thursday that the previous week’s average had reached 7.03%, the highest level since January 2025. A subsequent daily survey by Mortgage News Daily showed the average had climbed further to around 7.45% by Friday, reflecting a significant increase from the Freddie Mac reading.

A monthly labor market report due Friday will indicate whether the improvement seen in August continued into September. August’s report showed a monthly gain of 162,000 jobs, roughly three times the number most economists had expected following weak employment figures in the preceding months. The unemployment rate remained unchanged at 4.1% in August.