US key rate raised to 3.75% to 4.00%: what the Fed decision means for tech stocks and ETFs

The US Federal Reserve (Fed) has ended its pause on interest rates. At its meeting on September 16, 2026, the Federal Open Market Committee (FOMC) unanimously raised the target range for the key rate by 25 basis points to 3.75% to 4.00%. This is the first rate increase since July 2023. Led by Fed Chair Kevin Warsh, the central bank responded to still-elevated inflation and geopolitical price risks in the energy market. For private investors, this move has direct implications for US technology stocks, bonds, and global ETFs such as the MSCI World.

Inflation concerns and exogenous risks as triggers

The Fed cited persistent inflation risks as the main reason for its rate decision. US consumer prices were up 3.4% year over year in August 2026 and remained clearly above the 2.0% target. In addition to a still-robust US economy with an unemployment rate of around 4.1%, geopolitical tensions in the Middle East and the associated high energy and oil prices are weighing on inflation. In the recently prepared dot plot, 16 of 18 central bankers signaled the possibility of at least one further rate increase in 2026, putting the median policy rate for the end of 2026 at 4.1%.

Pressure on technology stocks and growth shares

Higher key rates lead to rising capital and borrowing costs in the financial markets. Technology and growth companies listed in the Nasdaq 100 and S&P 500 are feeling this adjustment directly: in valuation models, future earnings are discounted at a higher interest rate, which reduces the present value of companies and puts pressure on valuation multiples. For private investors, this means increased short-term volatility in high-growth individual stocks as well as in ETFs with a high tech weighting.

Impact on bonds and the US dollar

In the bond market, the Fed's decision led to rising yields on US government bonds. While existing bonds and bond ETFs came under pressure from the opposite price movement, conditions for new investments in fixed-income products are improving. At the same time, the higher US interest-rate level compared with other currency areas is strengthening the US dollar. For euro investors investing in US assets, a firm US dollar means currency gains at the portfolio level, while new purchases in the US become more expensive.

Strategic assessment for the overall portfolio

Since US stocks account for more than 60% of global equity indices such as the MSCI World, US monetary policy has an immediate impact on broadly diversified portfolios. Investors should focus on companies with strong pricing power, solid equity capital and low debt, as these can cope better with a higher interest-rate environment. A hasty restructuring of the portfolio is not advisable, but it is worth taking a look at more defensive sectors as well as interest-rate building blocks.

The Fed has made clear that fighting inflation remains the priority. As long as the interest-rate outlook remains high, private investors should closely follow the upcoming inflation data and the next Fed meeting at the end of October.