Wall Street turns focus to rate path and AI slowdown after Fed hike

ElevenAM Business Desk | Itanagar | 18 September 2026 | 3:35 PM IST

US investors are turning their attention to the Federal Reserve’s next steps after the central bank raised interest rates for the first time in three years. Markets had largely expected the move, but uncertainty remains over how far rates may rise and how higher borrowing costs will affect equities and the wider economy.

Wall Street is also watching elevated Treasury yields, oil prices and the debate over whether artificial-intelligence development should slow for safety reasons. Technology shares have been a major driver of the market, so any change in AI investment expectations could have an outsized impact. Investors will look to upcoming Fed speeches and US-China talks for further signals.