Daily Market Snapshot: September 14, 2026

Brought to you by your local Edward Jones financial advisors. Monday 9/14/2026 p.m. Stocks close lower amid AI concerns and lingering risks in the Middle East – U.S. equity markets traded lower on Monday, with AI in focus after several CEOs of leading AI labs endorsed slowing the pace of advanced-model development to allow safety measures to better keep pace with model capabilities. Stocks declined sharply early in the session but regained ground over the course of the day, with the S&P 500 and Nasdaq Composite posting modest declines of 0.5% and 0.6%, respectively. In addition to AI-related concerns, lingering geopolitical uncertainty weighed on investor sentiment, in our view, after planned diplomatic talks between Iran and several Gulf nations were postponed. Oil prices moved higher amid the diplomatic setback and continued supply concerns, with WTI crude trading above $100 per barrel. In bond markets, Treasury yields were little changed, with the 10-year U.S. Treasury yield near 4.99% and the 2-year yield around 4.64%. Amid heightened market and geopolitical uncertainty, the U.S. dollar strengthened against a basket of developed-market currencies. AI concerns weigh on markets – Global equity markets closed mostly lower on Monday, with technology stocks and companies exposed to the AI infrastructure buildout among the laggards. The weakness followed calls from several leaders of major AI labs over the weekend to slow the pace of AI development so that safety and governance measures can better keep pace with advances in model capabilities. In an essay published Saturday, Anthropic CEO Dario Amodei described the underlying concern by stating that AI has been "advancing drastically faster, driven by AI's growing ability to build the next generation of AI." In other words, AI is increasingly helping to accelerate its own development and, if left unchecked, "could outrun our ability to understand and control these systems," according to Amodei. These announcements have led investors to question whether the effort could slow the pace of AI-related capital spending or corporate adoption. Either outcome could create a headwind for companies that have benefited most from the AI buildout. It remains unclear to us whether these comments will ultimately translate into a new regulatory framework, voluntary limits on model development, or slower spending on chips and computing infrastructure if companies devote more resources to safety. President Donald Trump, however, opposed slowing AI development over the weekend, emphasizing the importance of maintaining the United States' competitive advantage. Alongside ongoing geopolitical uncertainty, we believe these developments could weigh on markets in the coming days or weeks as investors assess the potential implications for corporate profits. Although the ultimate impact of this weekend's comments remains uncertain, we believe the underlying macroeconomic backdrop remains supportive for equity markets. Labor-market conditions have improved, manufacturing activity has rebounded, and consumer spending trends have remained healthy. Additionally, earnings growth has been robust in 2026. S&P 500 earnings are expected to increase by more than 30% this year, while U.S. small- and mid-cap companies, which generally have less exposure to technology-related industries, are expected to deliver earnings growth of more than 20%. We remain favorable toward equity markets over the longer term but continue to believe that diversification is critical. In addition to favoring U.S. large-cap stocks and emerging-market equities, we also favor U.S. mid-cap stocks. Within U.S. equities, we recommend maintaining balanced exposure to growth- and value-style stocks. Within international markets, we recommend favoring value-style stocks, which could help provide diversification benefits because of their lower technology exposure and greater orientation toward cyclical industries. Geopolitics remain in focus as oil prices rise – After a brief reprieve on Friday, when oil prices declined amid hopes for diplomatic discussions between Iran and several Gulf nations, crude prices closed higher to begin the week following the postponement of those talks. The diplomatic setback comes after Saudi Arabia closed a key pipeline that allows the country to transport crude oil to Red Sea export terminals, bypassing the Strait of Hormuz. The renewed uncertainty in the Middle East has pushed oil prices higher, with Brent crude, the international benchmark, and West Texas Intermediate crude both trading above $100 per barrel. Without a clear near-term diplomatic off-ramp, the path forward remains uncertain. Even so, we would remind investors that making portfolio changes in response to geopolitical developments has generally not served long-term investors well, historically. Despite a roughly 9% peak-to-trough decline in the S&P 500 during the first quarter, when the conflict began, stocks have staged an impressive recovery. Through Friday's close, the S&P 500 had gained nearly 12% year to date, while U.S. small- and mid-cap stocks had each advanced more than 13%. Economic activity has also remained resilient, supported by continued job growth, an expansion in manufacturing activity, and stability in consumer spending. Alongside recent uncertainty surrounding AI, risks in the Middle East could continue to weigh on investor sentiment, place additional upward pressure on near-term inflation, and constrain households' discretionary spending, in our view. However, resilient economic activity and robust corporate profit growth continue to underpin our constructive longer-term outlook for equity markets. While geopolitical uncertainty could contribute to periods of market volatility, we continue to believe investors are best served by maintaining a diversified portfolio aligned with their long-term financial goals and risk tolerance. Important information: This is for informational purposes only and should not be interpreted as specific investment advice. Investors should make investment decisions based on their unique investment objectives and financial situation. While the information is believed to be accurate, it is not guaranteed and is subject to change without notice. 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