September brought a Federal Reserve rate increase, higher long-term Treasury yields, and rising oil prices tied to the U.S.-Iran conflict. Most stocks and bonds declined together, an uncommon combination that offered diversified investors little room to gain ground. For households and businesses in San Antonio, these developments are relevant to borrowing costs, cash flow planning, and financial decisions.

How Major Stock Indexes Finished September

Technology carried the month. The Nasdaq 100 rallied on strength in AI and chip stocks, while the S&P 500, the Dow, and shares of smaller companies declined as rising rates affected the rest of the market.

• The S&P 500 slipped 0.45%.
• The Nasdaq 100 rallied 3.23%.
• The Dow Jones Industrial Average slumped 4.29%.

Economic Growth Revised Higher

Second-quarter growth was revised up to a 2.2% annual rate, supported by stronger consumer spending and business investment, even as borrowing costs and energy prices climbed. That strength supports paychecks and profits, but it also makes inflation harder to tame.

For small businesses, current conditions can make regular bookkeeping, cash flow management, and financial projections especially useful tools for keeping financial information current and planning ahead.

Diesel Prices Move Above $6

The national average diesel price crossed $6 for the first time in September. By late September, it was up about 70% since the U.S.-Iran conflict began, as attacks on tankers and Russian refineries, along with Moscow’s export ban, left refiners unable to keep up.

Because diesel moves nearly every product to market, its cost flows into freight, food, and delivery prices. That makes diesel a broader source of price pressure than gasoline and a consideration for businesses reviewing operating costs and budgets.

The Federal Reserve Raises Its Benchmark Rate

At its September meeting, the Federal Reserve raised its benchmark rate by a quarter point. After the increase, most policymakers were forecasting another hike in 2026. Even with a softer inflation reading late in the month, the Fed had little reason to ease while prices were still rising too quickly.

Higher rates can affect borrowing, budgeting, and the timing of business decisions. At Hector E. Garcia, CPA, we help individuals, families, and privately held businesses in San Antonio and Bexar County use current financial information to support tax planning and broader financial decisions.

Long-Term Treasury Yields Rise

The 10-year Treasury yield rose to its highest level since 2007. When yields rise, the value of existing bonds falls, especially for funds holding longer maturities. Over time, higher yields can increase rates on mortgages, car loans, and business borrowing.

For businesses that are evaluating financing, managing debt, or building budgets, timely financial statements and clear cash flow reporting can help bring the relevant numbers into focus.

What to Watch in October

October will reveal whether September’s surge in energy prices and bond yields was a passing shock or the start of something more durable. The mid-month consumer price report will be the key test.

A fuel-driven increase might be manageable, but signs that higher costs are spreading into rents, insurance, and other services would strengthen the case for another hike at the Fed’s late-October meeting.

At Hector E. Garcia, CPA, we are keeping a close eye on the markets and the factors that may affect our clients. Whether you need support with business tax preparation, bookkeeping, budgeting, or cash flow management, our San Antonio financial team is available to provide personalized guidance based on your circumstances.