Wall Street Opens in the Red, Fed and Oil Shadow the Market

The United States stock market opened lower on Tuesday (September 15, 2026), as investors remained cautious ahead of the Federal Reserve's interest rate decision. Early in trading, the Dow Jones Industrial Average fell around 140 points, or 0.3%, while the S&P 500 and Nasdaq Composite each fell around 0.1%.

Pressure on Wall Street came primarily from the bond market. The 10-year US Treasury yield remained around 5% after previously hitting its highest level since 2007. High yields increase funding costs and make bonds more competitive compared to stocks, especially high-valued technology stocks.

Oil prices, which remained above US$100 per barrel, added to the pressure. WTI was hovering around US$102 per barrel at the start of the session, while conflicts in the Middle East continued to raise concerns about energy supplies. Rising oil prices are feared to maintain high US inflationary pressures and strengthen the Fed's case for tightening monetary policy.

Technology stocks are beginning to stabilize after experiencing significant pressure in the previous trading session due to concerns about the development of artificial intelligence. Nvidia performed better after CEO Jensen Huang dismissed calls to slow AI development, while the semiconductor sector attempted to recover from a sharp sell-off the previous day.

Investors' primary focus now turns to the two-day Federal Open Market Committee meeting, which begins Tuesday. The market expects a strong chance of the Fed raising interest rates by 25 basis points, citing inflationary pressures and rising energy prices. These expectations of a rate hike are one of the biggest factors limiting risk appetite on Wall Street.

Wall Street's movements throughout the session are expected to remain sensitive to changes in Treasury yields and oil prices ahead of the Fed's decision on Wednesday. If yields break above 5% again and oil continues its rally, pressure on riskier stocks will increase again. Conversely, a easing of these two factors could provide room for US stock indices to rebound ahead of the monetary policy announcement. (CP)