February Monthly Market Review

An excerpt from our February Monthly Market Review: U.S. equities fell in February amid heightened policy uncertainty, signs of slowing economic growth, fears of looming tariff-induced inflation, and a sharp deterioration in consumer and business sentiment. Small cap stocks and the Magnificent-7 led the decline. Non-U.S. advanced and emerging equity markets, in contrast, rose. European equities led advanced economy markets higher. The Chinese market outpaced all others, jumping 11.8%. U.S. Treasury prices also rose, especially at longer maturities. The yield curve re-inverted with the yield on 10-year Treasuries once again falling below the 3-month rate. The decline in yields was driven by a sharp fall in real yields which more than offset rising inflation expectations. Credit markets also registered gains, with investment grade bonds outpacing their high yield counterparts. The U.S. dollar index declined in February. Gold closed the month near record highs. Oil prices fell on concerns over economic growth and high inventory levels.

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