Market Close: Fed Raises Rates, Signals More Hikes Ahead; Stocks Fall • 9/16/26

Watch on YouTube ↗  |  September 16, 2026 at 20:43  |  3:55  |  CNBC
Speakers
Steve Liesman — Senior Economics Reporter
Joe Terranova — Senior Managing Director, Virtus Investment Partners
Diana Olick — CNBC Real Estate Correspondent
Kevin Warsh — Federal Reserve Chairman
Jeffrey Gundlach — Founder & CEO, DoubleLine Capital
Jessica Ettinger — Anchor, CNBC

Summary

The Federal Reserve raised interest rates for the first time in three years and signaled more hikes ahead, triggering a sharp sell-off in stocks and bonds. Fed Chair Kevin Warsh cited elevated inflation, while Jeffrey Gundlach argued the Fed should have hiked 50 basis points. Oil remained elevated around $102 and record diesel prices pressured freight companies, with JB Hunt warning on earnings; homebuilder sentiment also weakened on high mortgage rates and costs.

  • Fed raises rates by a quarter point, first hike in three years.
  • Stocks fall; Dow down 631 points led by IBM and Goldman Sachs.
  • 10-year Treasury yield tops 5%, highest in three years; bonds sell off.
  • US crude oil around $102; diesel hits record $6.31.
  • JB Hunt shares drop 12% on fuel-cost warning; Joe Terranova warns of earnings degradation.
  • Homebuilder sentiment falls to lowest in a year on high mortgage rates, labor, material costs.
  • Upcoming data: housing starts, permits, pending home sales, jobless claims.
Ideas
Steve Liesman Senior Economics Reporter 0:57
Hawkish Fed pressures stocks and bonds.
The Fed's rate hike was well anticipated, but Chair Warsh's hawkish rate outlook was more aggressive than markets expected, triggering a sharp sell-off in stocks and especially bonds. This suggests continued pressure on equities and fixed income if the Fed signals more hikes ahead.
STOCKS MED
Joe Terranova Senior Managing Director, Virtus Investment Partners 2:40
Diesel costs threaten JB Hunt earnings.
High diesel costs are pressuring JB Hunt's earnings, with the CFO warning earnings could fall 5-10%, and Joe sees this as a troubling sign that rising energy costs may cause earnings degradation across the board. The warning should not be dismissed.
JBHT MED
Diana Olick CNBC Real Estate Correspondent 3:16
Homebuilder sentiment weakens on high costs.
Homebuilder sentiment dropped to its lowest level in a year, pressured by high mortgage rates, labor shortages, and rising material costs. Builders are feeling worse about their business, a negative signal for homebuilder equities.
XHB MED
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This CNBC video, published September 16, 2026, features Steve Liesman, Joe Terranova, Diana Olick discussing STOCKS, JBHT, XHB. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Steve Liesman, Joe Terranova, Diana Olick  · Tickers: STOCKS, JBHT, XHB