Stocks Rise Pre-Bell as Investors Assess Fed Rate Outlook

07:36 AM EDT, 09/18/2026 (MT Newswires) -- The benchmark US stock measures were trending higher before the open Friday as investors continued to assess the Federal Reserve's policy path ahead following its latest interest-rate hike. The SP 500 rose 0.2%, the Dow Jones Industrial Average edged up 0.1% and the Nasdaq added 0.4% in premarket activity. The three main indexes finished Thursday trading higher, snapping a three-day losing streak. Earlier in the week, the Fed raised its benchmark lending rate by 25 basis points in a unanimous vote to combat sticky inflation, while signaling another hike could happen later this year. Deutsche Bank expects the Fed to deliver another 50 basis points of tightening through quarter-point rate increases in December and March, strategist Matthew Luzzetti said in a note emailed to MT Newswires on Thursday. Macquarie Group also expects another 50 basis points of tightening, comprising quarter-point rate increases in December and the first quarter of 2027. "After more than five years of significantly elevated inflation, a period which included a rate cutting cycle, the new Warsh Fed appears to be taking a step in the right direction to combat dangerously high price pressures," Stifel Chief Economist Lindsey Piegza said in a Thursday report. "The (Federal Open Market Committee) appears sincere in its commitment to restore price stability." Markets are pricing in a 55% probability that the central bank will increase interest rates by 25 basis points in October, with the remaining odds in favor of a pause, according to the CME FedWatch tool. Treasury yields were rising, with the two-year rate gaining 2.3 basis points to 4.71% and the 10-year rate increasing 1.2 basis points to 4.96%. Fed Vice Chair for Supervision Michelle Bowman, a permanent voting member of the central bank's policy-setting committee, is scheduled to speak at 9:30 am ET, while Kansas City Fed President Jeff Schmid is slated to speak at 11:45 am. Friday's economic calendar has the industrial production report for August at 9:15 am, while the weekly Baker Hughes oil-and-gas rig count is out at 1 pm. West Texas Intermediate crude oil dipped 0.5% to $101.45 a barrel, while Brent declined 1.4% to $103.41. The US State Department approved a potential $24.3 billion sale of 48 Lockheed Martin (LMT) F-35 fighter jets and related equipment to Saudi Arabia, CNBC reported. The approval comes as Yemen's Houthi rebels ramp up their attacks on the Kingdom. The Iran-backed military group recently launched drone attacks on Saudi Arabia's East-West oil pipeline, resulting in its shutdown. Berkshire Hathaway's (BRK.A, BRK.B) class A and B shares were down pre-bell after the multinational conglomerate announced that Warren Buffett will step down as chairman, effective immediately, with his son Howard Buffett to succeed him. Alphabet's (GOOG, GOOGL) class A and C stock were up more than 2% each, while DraftKings (DKNG) rebounded 0.5% following a 7.6% drop at the close of Thursday. Steel Dynamics (STLD) decreased 1.8% as the steel producer issued a downbeat third-quarter earnings outlook. Gold nudged 0.5% higher at $4,419 per troy ounce, while bitcoin advanced 2.2% to $78,199.