S&P 500 Rises 1% as Oil Retreat and Trump-Xi Summit Hopes Lift Equities After Volatile Post-Fed Week

U.S. equities rallied on September 21, 2026, with the S&P 500 gaining 1 percent to pull within 0.9 percent of its all-time high, while the Nasdaq Composite climbed 1.6 percent and the Dow Jones Industrial Average rose 0.4 percent by midday Eastern time. The advance followed a volatile week marked by the Federal Reserve's first interest rate increase since 2023, with the central bank raising its benchmark rate by 25 basis points to a range of 3.75 to 4 percent on September 16. Falling oil prices provided relief, with Brent crude dropping 3.4 percent to around $100 per barrel and U.S. crude sinking 3.5 percent to approximately $96.76, easing inflation concerns that had weighed on sentiment. Treasury yields also moderated, with the 10-year yield slipping below 5 percent after touching that level earlier in the week. The positive tone was further supported by anticipation of this week's summit between President Trump and Chinese President Xi Jinping, scheduled for September 24, with traders viewing potential diplomatic progress on trade and AI policy as a tailwind for technology stocks. Semiconductor shares led the rally, with the PHLX Semiconductor index climbing more than 2 percent to its highest level since September 9. The prior week had seen the Dow slide 1.7 percent for its worst week since March, while the S&P 500 dipped 0.1 percent, though the Nasdaq managed a 0.7 percent gain. For the year to date, markets remain strongly positive despite recent churn, with continued earnings growth offsetting elevated Treasury yields and persistent geopolitical uncertainty tied to the Iran conflict and its impact on global energy markets.