February 2026 Monthly Market Review

An excerpt from our February 2026 Monthly Market Review:

The last trading day of February closed on the cusp of the start of the Iran war. The main body of this Global Market Review covers developments through end-February. The annex to this review considers the market’s preliminary reaction to the war, highlighting commodity, currency, bond, and equity market movements in the early days of the conflict through noon, March 3, 2026.

Prior to the initiation of hostilities, U.S. equities declined slightly in February in largely range-bound trading. Large tech stocks—including software service providers and AI-related firms—were the main contributors to this decline. Developed and emerging non-U.S. equity markets, in contrast, rose strongly in the course of the month. U.S. Treasury prices rose as longer term yields fell and the yield curve flattened. With war tensions mounting, oil prices shot higher in February, extending their strong January gains. Gold prices also rose sharply in February and are up 22.2% so far this year. The U.S. dollar appreciated somewhat against major currencies.