February Monthly Market Review

An excerpt from our February Monthly Market Review: Global equity markets surged higher in February. The S&P 500 and NASDAQ indexes reached all-time highs and the Japanese equity market reattained the level prevailing at its pre-bubble peak some 34 years ago. A frenzy fed by speculation over the transformative potential of an AI technological revolution was a main driver of the U.S. equity market gain. Hopes for continued disinflation and resilient economic growth also contributed to the rally. However, markets priced in a somewhat more realistic outlook on the timing of a Fed pivot to easing. Reflecting this reassessment, U.S. Treasury yields rose, and investment grade credit markets lost ground. High yield bonds, however, managed a small gain. The SEC’s approval of Bitcoin ETFs has accorded a veneer of respectability to the crypto market, resulting in large inflows and a spike in Bitcoin prices. Oil prices rose in February adding to January’s strong gains. The U.S. dollar appreciated marginally against most major currencies.

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