Weekly Wrap

Stocks finished lower in a volatile week that underscored the market’s uneasy relationship with mega-cap leadership, AI disruption concerns, and a still-hawkish inflation backdrop. The S&P 500 (-0.4%) slipped back below its 50-day moving average, while the Nasdaq Composite (-1.0%) and DJIA (-1.3%) also posted weekly losses. Small- and mid-cap stocks did not provide shelter, with the Russell 2000 (-1.2%) and S&P Mid Cap 400 (-0.9%) finishing firmly lower.

The week began with a sharp “risk-off” tone tied to renewed tariff uncertainty and intensifying AI-disruption fears, particularly across software and financials. Early weakness in mega-cap technology and asset managers set the tone, and although dip-buying efforts midweek briefly restored technical footing, the rebound ultimately proved fragile.

AI disruption remained a dominant theme. Software stocks endured sharp swings throughout the week as investors grappled with automation headlines and evolving competitive dynamics. While the iShares Expanded Tech-Software ETF (+1.0%) managed to finish modestly higher for the week, the path was choppy and sentiment remained fragile. At the same time, semiconductor stocks struggled to provide consistent leadership, with the PHLX Semiconductor Index (-2.0%) under pressure.

A major inflection point came with earnings from NVIDIA. Despite delivering another stellar report highlighted by record data center revenue and strong guidance, the stock fell sharply and ended the week down 6.7%. The muted response reinforced lingering concerns about valuation and the sustainability of hyperscaler capital expenditures tied to the AI buildout. That hesitation spilled over into other chipmakers and weighed on the broader information technology sector (-2.2%), while the Vanguard Mega Cap Growth ETF (-0.9%) also retreated.

Financials (-2.0%) were another area of notable weakness. Early-week pressure tied to AI-related uncertainty and private equity exposure resurfaced late in the week after a hotter-than-expected inflation print pushed out rate-cut expectations. The January Producer Price Index rose 0.5% (Briefing.com consensus 0.3%), while core PPI increased 0.8% (Briefing.com consensus 0.3%), reinforcing the notion that inflation pressures remain sticky at the wholesale level. The data added to an already hawkish tilt and undercut enthusiasm for rate-sensitive areas such as capital markets and leveraged finance.

In contrast to tech and financials, defensive sectors stood out. Utilities (+2.9%), consumer staples (+2.7%), and health care (+2.1%) attracted steady rotational flows, while energy (+2.0%) benefitted from a rebound in crude prices. Oil experienced a volatile week amid escalating tensions between the U.S. and Iran, with late-week comments from President Trump keeping geopolitical risk in focus.

Overall, the week reflected a market still searching for durable leadership. Mega-cap technology failed to convert strong earnings into sustained upside momentum, AI disruption fears resurfaced across software and financials, and a firm PPI reading reinforced the Fed’s cautious stance. At the same time, defensive sectors and energy saw continued interest, highlighting an ongoing rotation away from concentrated growth leadership and toward a more selective, risk-aware positioning backdrop.

• S&P 500: -0.4%
• S&P Mid Cap 400: -0.9%
• Nasdaq Composite: -1.0%
• Russell 2000: -1.2%
• DJIA: -1.3%

Monday:

While stocks weathered some volatility late last week to chart a higher finish, the market faced a sharp retreat today, with the S&P 500 (-1.0%), Nasdaq Composite (-1.1%), and DJIA (-1.7%) finishing firmly lower across the board. The S&P 500 closed below its 50-day moving average (6,895.83) and moved back into negative territory for the year. 

The Russell 2000 (-1.6%) and S&P Mid Cap 400 (-1.8%) closed with even wider losses, underscoring a broad "risk off" tone in today's trade. 

Morning headlines revolved around tariff uncertainty after President Trump raised the Section 122 global tariff rate to 15% from 10% and warned this morning that he would impose additional tariffs on countries that attempt to revisit recent trade agreements with the U.S. The threat was made just hours after it was reported that the EU is pausing the approval of the trade deal, pending further review. Late this afternoon, Politico reported that it is unlikely that Congress will have the votes to extend the Section 122 tariffs past 150 days, adding to the uncertainty around the situation.

Unsurprisingly, many stocks in the consumer discretionary sector (-2.2%) struggled, especially those that rely on overseas manufacturing and large import volumes, such as Williams-Sonoma (WSM 201.89, -12.97, -6.04%), lululemon athletica (LULU 178.11, -9.19, -4.91%), and NIKE (NKE 63.08, -2.32, -3.55%). 

Elsewhere in the sector, casino and travel-related names such as Expedia Group (EXPE 188.51, -14.97, -7.36%) and MGM Resorts (MGM 34.26, -2.54, -6.89%) charted even wider losses. 

Tesla (TSLA 399.83, -11.99, -2.91%) and Amazon (AMZN 205.27, -4.84, -2.30%) finished lower amid a tough day for mega-cap tech, which saw the Vanguard Mega Cap Growth ETF finish 1.3% lower. 

The market is no stranger to weakness across mega-cap and tech names this year, particularly in the software space. 

Microsoft (MSFT 384.60, -12.63, -3.18%) was a Magnificent Seven laggard, providing weak leadership for an already beleaguered software space. The iShares GS Software ETF finished 4.7% lower as renewed fears of AI disruption saw software names such as Datadog (DDOG 102.62, -13.04, -11.28%) and CrowdStrike (CRWD 350.33, -38.27, -9.85%) plot some of the widest retreats in both the information technology sector (-1.1%) and the broader S&P 500. 

IBM (IBM 223.38, -33.78, -13.13%) faced the widest retreat, which was attributed to news that Claude can automate COBOL modernization. 

Software weakness added to pressure across asset manager names, which were already under pressure following reports last week that Blue Owl Capital (OWL 10.45, -0.36, -3.35%) is restricting redemptions. 

For PE firms with meaningful general partner stakes in portfolio companies tied to traditional enterprise software, uncertainty around future earnings and exit prospects weighed on sentiment, sending stocks such as KKR (KKR 92.19, -8.99, -8.89%) and Ares Management (ARES 114.57, -8.59, -6.97%) firmly lower. 

Meanwhile, fears that AI disruption could slow high-income spending sent ripples across stocks in the payment space lower, such as American Express (AXP 321.24, -24.94, -7.20%) and Capital One (COF 190.00, -18.42, -8.84%).

The industrials sector (-1.4%) also saw a continuation of weakness attributed to AI-disruption fears, including couriers such as C.H. Robinson (CHRW 177.20, -12.86, -6.77%) and data services such as Equifax (EFX 188.43, -9.03, -4.57%).

Defensive names garnered some rotational interest today amid the pronounced weakness in the broader market, sending the consumer staples (+1.5%), healthcare (+1.2%), and utilities (+0.7%) sectors to the top of today's leaderboard. Walmart (WMT 125.81, +2.82, +2.29%) rebounded from a modest post-earnings slide, while Eli Lilly (LLY 1058.56, +49.04, +4.86%) traded sharply higher after its competitor Novo Nordisk A/S (NVO 39.63, -7.79, -16.43%) reported weaker results for its newest weight-loss drug. 

Outside of the stock market, Bitcoin retreated under the $65,000 mark, adding to a sense of volatility across risk assets today. 

All told, it was a tough session for stocks, with pronounced software and mega-cap weakness combining with weak participation in the broader market. Today's renewed selling pressure across pockets of the market that have seen volatility amid fears of AI disruption could signal that last week's higher finish was more of a technical rebound and not a change in sentiment. Without material gains from semiconductors or other AI buildout stocks to offset the weakness in disrupted pockets of the market, the major averages will continue to struggle to break out from their current levels.

U.S. Treasuries began the week on a firmly higher note, sending the 5-yr yield toward its low from 2025 (3.530%) amid an uptick in trade tensions and ongoing weakness in asset managers. The 2-year note yield settled down four basis points to 3.44%, the 5-year note yield settled down seven basis points to 3.58%, and the 10-year note yield settled down six basis points to 4.03%. 

Reviewing today's data:

• Factory orders declined 0.7% month-over-month in December (Briefing.com consensus: 0.9%) following a 2.7% increase in November. Excluding transportation, factory orders increased 0.4% after increasing 0.1% in November. Shipments of manufactured goods rose 0.5% after sliding 0.2% in November.
  
  • The key takeaway from the report is that the weakness was concentrated in the transportation industry; otherwise, it was a decent month of order activity for durable goods.

Tuesday:

Stocks had a solid session today, with the major averages closing higher across the board amid increasingly broad participation throughout the session. The S&P 500 (+0.8%) and Nasdaq Composite (+1.0%) reclaimed the bulk of yesterday's weakness, with the S&P 500 trading above its 50-day moving average (6,895.59), but closing just under the technical level. Meanwhile, the DJIA (+0.8%) posted a similar gain, though it only amounted to just under half of yesterday's losses. 

Software stocks saw some buying interest after a particularly weak session yesterday, with the iShares GS Software ETF (+1.9%) clawing back some of its nearly 5.0% decline. While there was certainly an element of bargain hunting in today's trade, Anthropic's announcement of new partnerships in its Claude Cowork space helped quell some of the broader fears of AI disruption. FactSet (FDS 201.49, +11.23, +5.90%) was among the names listed and finished as one of the top-performing names in the financials sector (+0.5%), which had previously slid 3.3% on Monday.

Financial services companies and asset managers were among the outperformers after particular weakness yesterday, while PayPal (PYPL 47.01, +2.96, +6.73%) surged after Bloomberg reported that Stripe Inc. is interested in acquiring the company. 

Unsurprisingly, the information technology sector (+1.2%) was among today's top performers amid the bounce in software stocks. The sector was also supported by solid gains across chipmakers, sending the PHLX Semiconductor Index 1.5% higher. Advanced Micro Devices (AMD 213.84, +17.24, +8.77%) was a standout after announcing a landmark multi-year agreement to deploy up to 6 gigawatts of custom MI450/Helios AI systems with Meta Platforms (META 639.30, +2.05, +0.32%). 

Meanwhile, the consumer discretionary sector (+1.6%) also rebounded nicely from yesterday's lows, notching the widest gain today. Travel names such as Expedia Group (EXPE 198.12, +9.61, +5.10%) and Booking Holdings (BKNG 4068.56, +197.73, +5.11%) were among the top performers, while stocks that were particularly affected by President Trump's implementation of a 10% Section 122 tariff rate also finished higher, including Williams-Sonoma (WSM 209.00, +7.12, +3.53%) and NIKE (NKE 64.09, +1.00, +1.59%). 

Home Depot (HD 384.48, +7.49, +1.99%) notched a solid gain after posting an EPS beat following three consecutive misses.

The sector also benefitted from strong mega-cap leadership from Tesla (TSLA 409.38, +9.55, +2.39%) and Amazon (AMZN 208.56, +3.29, +1.60%) amid a strong day for the market's weightiest names that saw the Vanguard Mega Cap Growth ETF finish 1.1% higher. 

The industrials sector (+1.2%) notched a solid finish as well, while broadening strength throughout the session saw the defensive utilities (+1.1%) and consumer staples (+0.7%) sectors finish higher despite a weaker start. 

Meanwhile, the health care sector (-0.5%) finished with the widest loss, with particular weakness across managed care names such as Molina Healthcare (MOH 148.31, -7.90, -5.06%) and Humana (HUM 174.64, -6.52, -3.60%).

Only the energy sector (-0.1%) would also finish slightly lower as crude oil futures settled today's session $0.64 lower (-1.0%) at $65.66 per barrel.

Outside of the S&P 500, the Russell 2000 (+1.2%) and S&P Mid Cap 400 (+1.0%) outperformed as the market saw a considerable improvement in risk sentiment today. 

All told, today's session marked a solid start in reversing Monday's weakness. Though the rebound certainly was technical in some aspects, it was encouraging to see investors buy the dip across software and tech names, while a smattering of headlines around productivity software integration to the Claude Cowork model also offered some reprieve. 

Investors will have another sizable batch of earnigns reports to assess after the close while awaiting President Trump's State of the Union address this evening, which is expected to extensively feature the economy and affordability.

U.S. Treasuries had a subdued showing on Tuesday, keeping yields near their closing levels from Monday. The 2-year note yield settled up two basis points to 3.46%, and the 10-year note yield finished unchanged at 4.03%. 

Reviewing today's data:

• December FHFA Housing Price Index 0.1% (Briefing.com consensus 0.4%); Prior was revised to 0.7% from 0.6%
• December S&P Case-Shiller Home Price Index 1.4% (Briefing.com consensus 1.4%); Prior 1.4%
• February Consumer Confidence 91.2 (Briefing.com consensus 86.0); Prior was revised to 89.0 from 84.5
  • The key takeaway from the report is that the month-over-month improvement was driven by increased expectations, with all three components of the index—income, business, and labor market conditions—advancing from January.
• December Wholesale Inventories 0.2% (Briefing.com consensus 0.2%); Prior 0.2%

Wednesday:

The stock market had another solid session on the heels of yesterday's rebound efforts, with solid tech leadership pushing the S&P 500 (+0.8%), Nasdaq Composite (+1.3%), and DJIA (+0.6%) higher throughout the session. The S&P 500 easily closed above its 50-day moving average (6,895.87), which it had violated on a closing basis on Monday. 

The top-weighted information technology sector (+1.8%) led the advance, supported by strength on multiple fronts. 

The iShares GS Software ETF (+3.1%) captured another solid gain, which saw the ETF return to its flatline for the week after pronounced weakness on Monday. AppLovin (APP 421.93, +28.71, +7.30%) was a standout in the space, while Salesforce (CRM 191.75, +6.33, +3.41%) and Snowflake (SNOW 169.21, +8.15, +5.06%) traded higher ahead of their earnings reports after the close, which are being touted as a key test for this week's improvement in sentiment across the group that has been plagued by concerns of AI disruption. 

Encouragingly, Workday (WDAY 133.16, +2.93, +2.25%) turned an early loss into a nice gain today after topping earnings estimates but issuing cautious guidance. 

While the software earnings after the close are an important test for the group, NVIDIA's (NVDA 195.62, +2.78, +1.44%) earnings this afternoon are likely the most anticipated event of the week. The stock captured a nice gain today as analysts predict another blowout report, though it has struggled to recapture record highs from late October amid valuation concerns across some of the market's largest names. 

NVIDIA's strength contributed to solid gains across the PHLX Semiconductor Index (+1.6%) and the Vanguard Mega Cap Growth ETF (+1.4%). 

Mega-caps played a key role in today's index-level gains, as the S&P 500 Equal Weighted Index (+0.1%) considerably lagged the market-weighted S&P 500 (+0.8%). 

Mega-cap strength helped the communication services sector (flat) capture a nice gain (along with considerable strength in Netflix (NFLX 82.70, +4.66, +5.98%), while the consumer discretionary sector (+0.5%) saw leadership from Tesla (TSLA 417.33, +7.95, +1.94%) and Amazon (AMZN 210.64, +2.08, +1.00%) outweigh broader weakness in the sector.

Homebuilder names such as Lennar (LEN 110.73, -5.67, -4.87%) were particularly weak after cautious guidance from Lowe's (LOW 263.02, -15.57, -5.59%) prompted concerns around housing demand. 

Meanwhile, the financials sector (+1.7%) captured the second widest gain today. Investors bought into recent weakness across major banking and lending names such as Citigroup (C 114.34, +4.78, +4.36%) and Capital One (COF 205.73, +9.17, +4.67%), while Coinbase Global (COIN 183.94, +21.91, +13.52%) posted a monster gain after announcing it will expand into stock trading for U.S. users. 

A nearly 8% rebound in Bitcoin today added to the constructive tone, and pushed Robinhood Markets (HOOD 77.53, +4.14, +5.64%) higher as well. 

Losses were relatively modest today across the five S&P 500 sectors that finished lower.

The industrials sector (-0.8%) lagged as a majority of its components traded lower following a nice gain yesterday, while the defensive consumer staples sector (-0.6%) also traded lower amid the resurgence in mega-cap and growth stocks today. 

Outside of the S&P 500, the Russell 2000 (+0.4%) and S&P Mid Cap 400 (+0.4%) reversed their early weakness as strength broadened throughout the session. 

Overall, today's session marked another constructive day for stocks, with the major averages now sitting mostly higher for the week after pronounced weakness on Monday. Mega-cap and tech stocks saw some rotational interest, which pushed the major averages firmly higher despite mixed strength in the broader market. 

All eyes now turn to a consequential batch of earnigns reports after the close, including the market's weightiest component, NVIDIA. 

U.S. Treasuries recorded modest losses on Wednesday, with most tenors deepening their pullback from their best levels of the year. The early afternoon saw a pullback across the curve after the U.S. Treasury followed yesterday's soft 2-year note sale with a much weaker 5-year note offering. The 2-year note yield settled up one basis point to 3.47%, the 5-year note yield settled up two basis points to 3.62%, and the 10-year note yield settled up two basis points to 4.05%.

Reviewing today's data:

• The weekly MBA Mortgage Index rose 0.4% after increasing 2.8% a week ago. The Refinance Index was up 4.1% while the Purchase Index was down 4.7%.

Thursday:

The major averages finished mostly lower today amid considerable pressure across mega-cap and select tech names following NVIDIA's (NVDA 184.89, -10.74, -5.49%) earnings report. Continued strength across software names and some other pockets of the market helped the S&P 500 (-0.5%), Nasdaq Composite (-1.2%), and DJIA (flat) finish well off of their session lows, with the S&P 500 garnering some support around its 50-day moving average (6,898.97), which it closed just above. 

To be fair, NVIDIA delivered another stellar earnings report, topping expectations while reporting record data center revenue and issuing bullish guidance. While the stock gained several percentage points in after-hours trading, the immediate response waned overnight, and the stock faced sustained pressure throughout the day. The price action underscores the market's lingering concerns about whether hyperscalers (in this case being NVIDIA's customers) can sustain or expand upon the massive current levels of capital expenditure in the AI buildout. 

Other large chipmaker names such as Broadcom (AVGO 321.70, -10.61, -3.19%) and Advanced Micro Devices (AMD 203.68, -7.18, -3.41%) incurred similar losses, sending the PHLX Semiconductor Index (-3.2%) considerably lower and weighing on the information technology sector (-1.8%). 

Losses were somewhat softened by continued strength across software names as sentiment rebounds across software-as-a-service stocks. Salesforce (CRM 199.47, +7.72, +4.03%) charted a nice gain despite issuing cautious guidance, and the iShares GS Software ETF finished 2.2% higher. 

On a related note, NVIDIA CEO Jensen Huang told CNBC that markets were wrong about artificial intelligence's threat to software companies.

The rebound in software-related stocks contributed to gains in several of the best-performing S&P 500 sectors today. 

The financials sector (+1.3%) faced some choppiness but managed to finish near session highs. While strength was broad and featured another bounce in major banking names, financial publishing and software stocks such as Block (XYZ 54.54, +2.60, +5.01%) and Fidelity Nat'l Info (FIS 51.06, +1.99, +4.06%) dotted the top of the standings. 

Similarly, Equifax (EFX 207.85, +9.73, +4.91%) and Paycom Software (PAYC 129.83, +5.92, +4.78%) were among the outperformers in the industrials sector (+0.6%). 

Elsewhere, the energy (+0.3%) and real estate (+0.5%) charted modest gains, rounding out the four S&P 500 sectors that finished in positive territory. 

Losses outside of the information technology sector were ultimately modest in nature, with nearly all sectors finishing above their worst levels. 

The communication services sector (-0.8%) was a relative laggard, as Alphabet (GOOG 307.15, -5.88, -1.88%) was among today's mega-cap underperformers. 

Tesla (TSLA 408.49, -8.84, -2.12%) and Amazon (AMZN 207.92, -2.72, -1.29%) finished similarly, though broad strength throughout the consumer discretionary sector (-0.4%), including solid gains across travel-related names such as Expedia Group (EXPE 217.93, +14.19, +6.96%) and Norwegian Cruise Line (NCLH 25.03, +1.22, +5.12%), helped somewhat offset the weakness. 

The Vanguard Mega Cap Growth ETF finished 1.1% lower, weighing on the market-weighted S&P 500 (-0.5%) as it considerably underperformed the S&P 500 Equal Weighted Index (+0.6%). 

Outside of the S&P 500, the Russell 2000 (+0.5%) and S&P Mid Cap 400 (+0.4%) recovered from early weakness to chart decent gains of their own. 

Ultimately, today's session was relatively "normal" in terms of what the market has displayed so far in 2026. A mega-cap industry leader (NVIDIA) delivered another staggering earnings report, yet valuation concerns and capital expenditure concerns across its hyperscaler customer base saw the stock retreat below its 50-day moving average (185.60). Meanwhile, there was select rotational strength across some cyclical sectors (aided by a rebound in software names) and an outperformance across small- and mid-cap stocks. 

After several days of mega-cap and tech outperformance, today's pullback has the S&P 500 and Nasdaq Composite entering the Friday session unchanged for the week, with the S&P 500 a touch above its own 50-day moving average. 

U.S. Treasuries climbed on Thursday, sending yields on 10s and 30s to their lowest closing levels of the year, while shorter tenors also recorded solid gains, though their yields remained a bit above 2026 lows. The 2-year note yield settled down two basis points to 3.45%, the 10-year note yield settled down three basis points to 4.02%, and the 30-year note yield settled down three basis points to 4.67%.

Reviewing today's data:

• Initial jobless claims for the week ending February 21 increased by 4,000 to 212,000 (Briefing.com consensus: 211,000). Continuing jobless claims for the week ending February 14 decreased by 31,000 to 1.833 million.
  
  • The key takeaway from the report is its persistent low-firing, low-hiring messaging.

Friday:

Stocks had an eventful end to a busy week, though today's weakness saw the major averages finish lower across the board for the week and mostly lower for the month of February. 

The S&P 500 (-0.4%), Nasdaq Composite (-0.9%), and DJIA (-1.1%) struggled against a reignition of AI disruption fears, though some rotational strength helped the indices modestly improve from earlier session lows. 

The session started with AI disruption at the forefront of media coverage after Block (XYZ 63.70, +9.17, +16.82%) announced it will decrease its workforce by around 40% as the company automates more work with AI. 

The headline weighed heavily on asset manager names that had faced weakness in recent sessions over concerns they are over-exposed to traditional software companies. The collapse of U.K. mortgage firm Market Financial Solutions added to pressure across select names such as Apollo Global Management (APO 104.58, -9.82, -8.58%). 

A hotter-than-expected January PPI (0.5%; Briefing.com consensus 0.3%) and core PPI (0.8%; Briefing.com consensus 0.3%) print further pushed out the market's expectations for Fed easing this year, undermining the bull case for leveraged deal-making, M&A, and capital markets activity that large banks and PE platforms rely on.

Goldman Sachs (GS 860.22, -68.78, -7.40%) was a particular laggard, and the financials sector ultimately finished 2.0% lower. 

Only the information technology sector (-2.2%) finished with a wider loss, with pressure across packaged software names sending the iShares GS Software ETF 1.3% lower. 

Chipmakers did little to ease the weakness, with the PHLX Semiconductor Index finishing 1.2% lower. NVIDIA (NVDA 177.10, -7.79, -4.21%) was once again a laggard, failing to draw any buying support following its earnigns report as investors reacted to the company's announcement of a $30 billion investment in OpenAI. 

Dell (DELL 147.93, +26.48, +21.80%) was a standout after earnings, though it did little to offset broader weakness in the sector. 

The other nine S&P 500 sectors closed the week at or above their baselines as rotational buying ramped up throughout the duration of the session. 

Defensive sectors stood out today amid the weakness in tech, with the health care (+1.8%), consumer staples (+1.5%), and utilities (+1.1%) sectors all charting nice gains. 

The energy sector (+1.7%) finished similarly as crude oil futures settled today's session $1.85 higher (+2.8%) at $67.06 per barrel. President Trump told reporters that he is not happy with negotiations between the U.S. and Iran, but more talks will occur. The president expressed a desire to avoid an armed conflict but reiterated his stance that Iran cannot have nuclear weapons.

Rising oil prices weighed heavily on airline names such as United Airlines (UAL 106.30, -10.13, -8.70%) and Delta Air Lines (DAL 65.70, -4.81, -6.82%). 

In other corporate news, Netflix (NFLX 96.24, +11.65, +13.77%) traded sharply higher after deciding not to raise its bid for Warner Bros. Discovery (WBD 28.17, -0.63, -2.19%), leaving Paramount Skydance (PSKY 13.51, +2.33, +20.84%) the victor of the merger battle. Reports this afternoon stated that Paramount paid the $2.8 billion termination fee that was required of Warner Bros. 

Outside of the S&P 500, the Russell 2000 (-1.7%) and S&P Mid Cap 400 (-0.8%) lagged the major averages today. 

Ultimately, the major averages entered today's session little changed on a week-to-date basis after splitting the week between two weak and two strong sessions. Today's renewed pressure across tech and financial names resulted in a lower finish across the board, with the S&P 500 moving below its 50-day moving average in the process (6,900.47). However, the market did see some solid rotational interest, which increased throughout the day and helped ease index-level losses, fitting with the 2026 theme of leadership broadening beyond the tech and mega-cap space. 

U.S. Treasuries finished February with strong gains across the curve that sent yields to their lowest settlement levels of the year. The 2-year note yield settled down seven basis points to 3.38% (-10 basis points this week) and the 10-year note yield settled down six basis points to 3.96% (-13 basis points this week). 

• S&P Mid Cap 400: +8.1% YTD
• Russell 2000: +6.1% YTD
• DJIA: +1.9% YTD
• S&P 500: +0.5% YTD 
• Nasdaq Composite: -2.5% YTD

Reviewing today's data:

• January PPI 0.5% (Briefing.com consensus 0.3%); Prior was revised to 0.4% from 0.5%, January Core PPI 0.8% (Briefing.com consensus 0.3%); Prior 0.6%
  • The key takeaway from the report was rooted in the worrying core-PPI component, as that will foment concerns about pass-through to consumer prices that will likely keep the Fed leery about cutting rates soon.
• February Chicago PMI 57.7 (Briefing.com consensus 52.5); Prior 54.0
• November Construction Spending 0.3% (Briefing.com consensus 0.3%); Prior was revised to -0.2% from 0.5%
  • The key takeaway from the report is that residential construction spending accounted for the entirety of the monthly increase in total construction spending.