Market Commentary Chartbook September 2026

Market Commentary – October 20, 2026

U.S. GDP growth was revised upward to a 2.2% annualized rate in the second quarter, supported by stronger consumer spending and business investment tied to AI infrastructure. Consumer spending increased 3.8%, while business equipment investment maintained double-digit growth. Domestic demand, measured by final sales to private domestic purchasers, rose 4.6%, indicating solid underlying economic momentum. However, higher gasoline prices and declining consumer confidence suggest growing pressure on household finances. The economy has remained resilient despite geopolitical uncertainty and inflationary headwinds, but the Federal Reserve’s recent interest rate hike highlights the ongoing challenge of balancing economic growth with persistent inflation.