The answer was A. After weeks and days anticipating the increase, the verdict is out and markets have also reacted strongly.
The FED was unanimous of its decision and its the first step to further increases. As of 18 September 2026, the Philadelphia Semiconductor Index rose another 2.8%, its fourth consecutive gain, and finally broke above its 50-day moving average after that level had acted as resistance since July. The backdrop is still unusually volatile, the SOX had fallen about 21% in July, so some of what we are seeing is recovery from a major drawdown rather than a fresh move from a stable base. Next to watch : Micron earnings on 30 Sep
CPI Rises to 3.7% — Will the Tech Selloff Deepen?
QQQ fell 1.97% and the S&P 500 dropped 1.11% after September CPI rose 3.7% year over year, above expectations. Higher-rate fears and AI-sector deleveraging hit QQQ particularly hard due to its tech-heavy composition and lack of bank exposure. Bulls see resilient earnings as a cushion, while bears warn that persistent inflation threatens rate cuts and tech valuations. Should investors hold QQQ, rotate into value sectors, or reduce exposure?
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