S&P 500, Nasdaq advance, turning the page on a tumultuous week

Wall Street experienced a subdued conclusion to a turbulent week on Friday, September 18 as benchmark US Treasury yields surpassed 5 percent, crude prices rebounded from earlier gains but stayed above $100 per barrel, and inflation concerns remained at the forefront. The market's performance was divided into two main phases: the anticipation of the US Federal Reserve's anticipated interest rate hike and the reactions following the decision.

The Nasdaq and the S&P 500 both advanced due to a semiconductor rally, while the broader Dow Jones Industrial Average declined in value. The S&P 500 finished the week with a nominal loss, while the tech-focused Nasdaq finished higher than last Friday's close. The Dow suffered its largest weekly percentage decline since March. Industry experts expressed exhaustion and uncertainty regarding the potential implications of the Federal Reserve's decisions, as well as their long-term effects on equities and fixed income investments.

Inflation concerns continued to dominate the market, as crude prices climbed above $100 per barrel. However, they eased slightly from their session peaks once China, at Saudi Arabia's request, asked Iran to reduce Houthi rebel attacks on Saudi oil infrastructure. Rising oil prices have led to record diesel prices, which are likely to cause broader inflationary pressures impacting farming and shipping costs.

The global central banks have been engaging in a tightening policy cycle to curb inflation driven by the Iran war. The Bank of Japan increased interest rates to a 31-year high, following the Fed and the European Central Bank. The Bank of England held rates steady but signaled potential future hikes. Market forecasts currently anticipate a 55.4 percent probability of another Fed rate hike at the meeting in October, up from 42.5 percent the previous Friday and 7.2 percent a month ago.

The Dow Jones Industrial Average ended the week at 51,682.64, a 0.18 percent decrease from its previous close, while the S&P 500 rose by 12.74 points, or 0.17 percent, to 7,650.50, and the Nasdaq Composite gained 104.25 points, or 0.40 percent, to 26,522.55. Within the S&P 500's 11 major sectors, technology stocks gained the most, while utilities experienced the steepest percentage loss.

Warren Buffett announced that he would step down as chairman of Berkshire Hathaway and become chairman emeritus, nine months after handing the CEO position to Greg Abel. Berkshire Hathaway's shares fell on the day.

Xenon Pharmaceuticals halted enrollment in clinical trials for its experimental drug for major and bipolar depression due to reports of side effects, leading to a 30.7 percent decline in shares. Cryptocurrency-linked firms, including Coinbase, Strategy, and Robinhood, experienced gains ranging from 9.1 percent to 16.4 percent as Bitcoin prices increased by 5.9 percent.

Declining issues outnumbered advancers by a ratio of 1.78-to-1 on the New York Stock Exchange, with 92 new highs and 346 new lows. On the Nasdaq, 1,973 stocks rose, while 2,810 fell, with a 1.42-to-1 ratio of declining issues to advancers. The S&P 500 recorded five new 52-week highs and 30 new lows, while the Nasdaq Composite saw 45 new highs and 162 new lows.

The total volume of shares traded on US exchanges reached 25.29 billion, surpassing the 16.19 billion average for the full session over the last 20 trading days.