Week in Review: Will Oil and AI Carry the S&P 500?

After the Fed raised interest rates mid-week to tame inflation, by a much-anticipated 25 basis points, oil prices moved lower and markets staged a tepid relief rally.

But the major indexes struggled to move into the green for the week, even though U.S. oil prices were under pressure and settled for the week near $100 per barrel as futures contracts rolled over. The Dow Jones Industrial Average ($DJI) slid 1.69% for the week, and the S&P 500 Index (SPX) barely budged, with a decline of 0.08%. The small cap Russell 2000 Index (RUT) fell 1.5%.

In interviews after the Fed decision, there was much discussion about how many interest rate increases might ensue this year and beyond. Discussion also focused on consumer resilience in light of rising prices, and specifically the impact of rising oil prices on gasoline and the broader supply chain. See these video interviews and conversations:

• 'We Need to be Careful:' Why Shana Sissel Sees One More Rate Hike in 2026
• Arnim Holzer: Fed Can't Do 'One and Done' Rate Hike, Disconnect Widens in Crude & Refineries
• Near All-Time Highs, but Oil Could Change the Story | Morning Trade Live
• The Fed's Credibility Fight and Where to Invest Now | Market On Close

Technology stocks put in a strong showing Thursday. The tech-heavy Nasdaq-100 Index (NDX) gained 0.94% for the week, and the PHLX Semiconductor Index (/SOX) was up 0.83%. This came despite a stark warning from Dario Amodei, CEO and co-founder of Anthropic, who called for a global slowdown on AI development, to prevent destructive AI outcomes, in a lengthy New York Times essay Sept. 12. Other leaders at AI-tied enterprises agreed, including Sam Altman, CEO of OpenAI; Elon Musk, CEO at Tesla (TSLA) and Space Exploration Technologies, AKA SpaceX (SPCX); and Demis Hassabis, the chair and co-founder of Google (GOOGL) DeepMind. See these videos and conversations:

• Ca$htag$: TSLA Robotaxi Growth Over GOOGL 'Very Bullish' for AI Growth
• Where to Find Pure-Play AI Exposure | Market On Close
• ADI & ON Hidden Strengths in Tech Trade: Dave Nicholson on Analog AI's Importance
• Chris Wang on PLTR, META, SHOP Stock Picks Amid AI Safety Concerns

Not all AI headlines conveyed “slowdown” this past week. Amazon.com (AMZN) said it would source backup power generators for data centers from Generac Holdings (GNRC), with initial deliveries expected to total about $2.4 billion in 2027 and 2028, according to reports. The deal calls for Generac to issue warrants to Amazon with generator deliveries totaling up to $8 billion over time, according to reports. Generac shares jumped more than 18% Thursday and turned in one of the strongest S&P 500 performances last week.

For more on markets for the week that was, including Nancy Prial, co-CEO of Essex Investment Management, on why she thinks the S&P 500 could reach 8,000, and Ray Salmond, head of markets at Cointelegraph, on the Clarity Act and Bitcoin, see:

• When Value ETFs Look a Lot Like Tech | The Watch List
• Crude Oil Down as Post-Fed Market Cools, Warren Buffett Steps Down as BRK/B Chairman
• Nancy Prial: Three Under-the-Radar Picks for the Year Ahead
• Ray Salmond: Clarity Act Fails Key Senate Vote: What's Next for Bitcoin, Other Crypto Assets?

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