Bond yields fell last week as major equity benchmarks slipped. Will March steady markets after a short, but not-so-sweet, February?
Monday
S&P 500 1.04% | NASDAQ 1.13%
All major indexes (DOW, S&P500, NASDAQ) started the last week of February trading lower. Markets are trying, yet again, to price global tariffs into valuations with an uncertain outlook in the near term. The administration instituted a broad 15% global tariff with some exemptions based on industry.
Tuesday
S&P 500 0.77% | NASDAQ 1.04%
Markets recovered Monday’s losses while consumer confidence edged higher. Home improvement giant, Home Depot (HD), announced positive earnings which helped in the rebound efforts. No individual company, of course, determines overall equity strength but home improvement spending is considered a discretionary household expense.
Wednesday
S&P 500 0.81% | NASDAQ 1.26%
Wednesday trading went with the tide as all indexes rose higher. Little economic data was announced on the day so most of the gains were earnings reports driven. Chip-making giant, NVIDIA (NVDA), reported upbeat earnings which contributed to nice gains in tech.
Thursday
S&P 500 0.54% | NASDAQ 1.18%
Recent profit gains were trimmed in Thursday’s trading. Technology was, again, hit the hardest on the day. The DOW remained steady but was unable to recover losses sustained earlier in the week.
Friday
S&P 500 0.43% | NASDAQ 0.92%
Last day of the week and last day of the month left markets looking for profit-pulling opportunities. Increasing geopolitical tensions sent oil prices higher. Producer prices (PPI) also negatively contributed to sentiment as prices rose in January. The 10-year treasury fell below 4% for the first time since October 2025.
Conclusion
S&P 500 0.44% | NASDAQ 0.95%
February was a short month and didn’t prove to be very sweet. All 3 major indexes closed lower with the NASDAQ shedding almost 4% for the month. Earnings flooded in to finish off the month with positive takeaways. Sentiment can be swayed, however, by data from the economic calendar which was light this week. Highlights for earnings included positive reports from Home Depot (HD) and Lowes (LOW) while economic data spotlighted persistent inflationary concerns. Oil prices were also a key swing in price last week. This will be closely watched given concerns that inflation could potentially rear its head going into the spring. As investors closed out the short-trading month, there were noticeable trends including rebalancing activity and shifts to “safer” investments. Each asset class has its own level of risk and should be considered in a prudent manner.
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