Nasdaq-100 fund edges higher as 3,494 stocks fall; Fed's first hike since 2023
Wednesday, September 16, 2026: 2,062 of 5,830 U.S. common stocks rose as the Fed hiked; equal-weight S&P 500 fund RSP fell 0.79%, 0.34 percentage point more than SPY.
The Federal Reserve, in a 12-0 vote, raised its federal funds target range by a quarter of a percentage point on Wednesday, to 3.75% to 4%, the first increase since 2023. Chair Kevin Warsh said the committee must be confident that underlying inflation is moving to its objective "clearly and at sufficient speed," and that this standard "has not been satisfied." The S&P 500 fund SPY fell 0.44%. Counted name by name, that was not the session.
Among 5,830 U.S. common stocks listed on the NYSE, Nasdaq and NYSE American, counted from Tuesday's close to Wednesday's close, 2,062 rose, 3,494 fell and 274 were unchanged.
Chart: **3,494** stocks fell, against **2,062** that rose
Exchange-traded funds, other funds, foreign listings, and currency and crypto symbols are left out of that board. Roughly 1.7 declined for every one that rose. That is a second session of the same mix after Tuesday, when two U.S. stocks fell for every one that rose.
Equal-weight S&P 500 lags the cap-weighted fund again
The cap-weighted S&P 500 fund lost 0.44%. The equal-weight fund of the same 500 names, RSP, lost 0.79%. The Nasdaq-100 fund QQQ was the day's exception, up 0.03%.
Over the past month, none of the four is the exception. The Nasdaq-100 fund lagged cap weight too, and equal-weight and small-caps lagged further. Equal-weight's extra decline versus cap weight was 0.34 percentage point on Wednesday and 1.4 percentage points over the month.
A handful of mega-caps did not manufacture the S&P 500's decline. They cushioned it. Nine of the 20 largest stocks rose; eleven fell. That 9-of-20 split is still firmer than the 35% advance rate on the full board, which is why cap weight looked milder than equal weight.
J.B. Hunt falls 13% after a diesel warning
J.B. Hunt Transport Services, the trucking company, fell 13% after Chief Financial Officer Brad Delco told a Morgan Stanley conference that third-quarter earnings would drop 5% to 10% from the second quarter as diesel prices and driver costs rose. West Texas Intermediate crude was at $102.20 a barrel as of 4:34 p.m. Eastern, down 3.4%, reversing Tuesday's jump. Diamondback Energy dropped 8.0% and ConocoPhillips 6.1%. Energy is a larger slice of the equal-weight fund (4.4%) than of the cap-weighted fund (3.5%), so a 3.4% drop in crude costs the equal-weight fund more.
Microsoft, 5.6% of the cap-weighted fund, fell 1.37% and was the largest single drag. Exxon Mobil dropped 3.5%. Inside the equal-weight fund, the decline was spread across the 500 names rather than concentrated in a few. The eight largest single-name contributions summed to only -0.09 percentage points of a 0.79% drop.
Nvidia, the largest holding in the cap-weighted fund at 7.9%, rose 0.82%. Intel jumped 4.0% and was the biggest positive contributor to the Nasdaq-100 fund. Chip strength is how that fund could close 0.03% higher while the average S&P 500 stock could not.
The month behind Wednesday
On Friday, September 11, Charles Schwab's weekly trader's outlook said the NYSE advance/decline line had broken prior support and that the data may be suggesting the market is nearing breadth wash-out levels. Earlier this month, equal-weight was already down 2.8% over a month against a 1.1% cap-weight decline. That gap is now 3.85% versus 2.41%. The 10-year Treasury yield was 5.01% on Wednesday's curve.
The committee said inflation "remains elevated" and that Wednesday's action will support a "timelier return" to its 2% goal. Its median projection for the federal funds rate at the end of 2026 is 4.1%, above the 3.75% to 4% range it set on Wednesday.
Year to date the equal-weight fund is still up 11.72%, just ahead of the cap-weighted fund at 11.16%. The equal-weight fund is already down 3.85% over the past month. That is the market the committee's 4.1% year-end median would tighten into.
Frequently asked
Why did the S&P 500 fund fall less than the equal-weight fund?
Nine of the 20 largest stocks rose, a firmer split than the 35% advance rate on the full board, so cap weight was cushioned while equal weight was not.
Why was the Nasdaq-100 fund higher?
Chip strength: Intel jumped 4.0% and was the biggest positive contributor, and Nvidia rose as well.
What did the Fed do and say?
It raised the federal funds target range by a quarter point to 3.75% to 4%, saying inflation remains elevated and that the standard for confidence on inflation has not been satisfied.
Why did J.B. Hunt drop?
Its finance chief told a conference that third-quarter earnings would fall 5% to 10% from the second quarter as diesel and driver costs rose.