The S&P 500 index slipped 0.1% last week as the market digested a quarter-point rate increase from the Federal Reserve. The market benchmark is down 0.5% for September but up 12% this year.
The Fed’s policy-setting committee raised its benchmark lending rate by 25 basis points in a unanimous vote. The move lifted the federal funds rate to a range of 3.75% to 4%, the first time the FOMC has tightened monetary policy since July 2023.
The Summary of Economic Projections showed the median policy rate at 4.1% by the end of 2026, up from 3.8% projected in June, signaling another rate increase later this year.
The utilities sector had the largest percentage drop of the week falling 3%, followed by a 2.35% fall in financials, a 2.3% decline in real estate and a 1.9% slip in materials. Industrials, consumer discretionary, energy and consumer staples also moved lower.
Three sectors rose as health care climbed 1.8%, communication services gained 1.2% and technology was up 1.1%.
Earnings reports this week are expected from companies including Costco Wholesale (COST), AutoZone (AZO), Paychex (PAYX) and General Mills (GIS), among others. Economic data will include the US Manufacturing Purchasing Managers’ Index for September and August new home sales and durable goods.
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