This month, we review the market’s rotation away from mega-cap tech stocks that started in January and extended into February. While the S&P 500 traded lower, the average stock, as measured by the equal-weighted index, gained more than 3%. The rotation was broad-based: small caps outperformed large caps, value beat growth, seven of eleven sectors beat the S&P 500, and international stocks outpaced U.S. stocks. Market leadership is broadening after a long period in which a small group of mega-cap tech stocks drove most of the market’s gains, and diversified portfolios are benefiting from the rotation.

We answer seven important questions regarding the US-Iran conflict. We outline what has happened, how markets have responded, and what investors should be watching in the days ahead. The analysis highlights potential implications for energy markets, inflation, and broader risk assets, including how fluctuations in oil prices may affect global economic stability and investor sentiment.

This week, markets rebounded from an early-week sell-off tied to tariff uncertainty but finished the week little changed. The performance gap was narrow, with the Nasdaq, S&P 500, equal-weight S&P 500, Russell 2000, and Dow all flat to slightly lower. International stocks continued to outperform U.S. stocks, led by emerging markets. Gold gained +3%, extending its strong 12-month performance, while oil pulled back after last week's geopolitical spike. The VIX briefly rose above 21 on Monday before falling back to 19.

This week, markets stabilized as the AI-driven stress that dominated the prior two weeks began to ease. The S&P 500 and Nasdaq posted modest gains, with growth stocks outperforming value for the first time in five weeks. Volatility cooled, with the VIX briefly falling below 20, and high-yield credit spreads tightened, signaling improved risk appetite. Treasury yields ticked higher after the FOMC minutes revealed some officials discussed the possibility of rate hikes, pausing a multi-week rally that had driven Treasury yields. International stocks traded sideways as the U.S. dollar strengthened. Oil surged midweek amid escalating geopolitical tensions, gold traded lower amid a volatile week, and bitcoin extended its multi-month decline.

For this month’s chart of the month, we review how two identical salaries can lead to very different retirement lifestyles. The decisions you make in your peak earning years are just as important as the size of your paycheck. One of the most significant risks is lifestyle creep, which is the tendency for everyday spending to rise alongside income. How you manage a salary raise today can have a significant impact on your long-term financial security. Without a strategy for handling salary increases, even a high-earning household can find itself ill-prepared for the future.

This week, stocks traded sideways before a late-week sell-off. The S&P 500 gained +0.5%, but it continued to lag the Russell 2000 and Equal Weight S&P 500. It is now underperforming both indices by over -5% YTD, while the Nasdaq and Large Cap Growth are down over -2% YTD as investors rotate and market leadership broadens. International stocks extended their gains, with developed and emerging markets rising by more than 4% as the U.S. dollar weakened. Gold and oil were modestly lower, and the VIX rose above 20 amid AI-related volatility.

This month, we review economic data that continues to highlight a widening gap between how people feel and how the economy is performing. Measures of real activity, such as retail sales and industrial production, indicate the economy ended 2025 with solid momentum. In contrast, consumer confidence fell to multi-year lows, driven by concerns about inflation, job security, and geopolitical uncertainty, and the manufacturing conditions index remained in contraction. Despite weak consumer and business confidence, data that measures actual spending and economic activity are supportive of continued growth.

This week, markets were mixed as the rotation away from mega-cap stocks paused. The S&P 500 traded higher early in the week, briefly crossing the 7,000 level for the first time before a late-week pullback left it flat. Energy was the top-performing sector as oil rose to a 5-month high, while defensive sectors underperformed, led by Health Care. In the bond market, Treasury bonds posted modest gains as interest rates drifted lower, while corporate bonds traded lower amid widening credit spreads. A weaker US dollar boosted international stocks and commodity prices, with oil, gold, copper, and silver prices all surging.

This week, markets were choppy as policy headlines drove shifts in risk sentiment. Tariff-related developments sparked early-week volatility, though conditions stabilized as concerns eased. Major equity indexes like the S&P 500 and Nasdaq finished the week little changed, but leadership continued to rotate beneath the surface. Small-cap, value, and equal-weight indexes outperformed, while technology stocks and the growth factor weighed on market-cap-weighted benchmarks. In fixed income, Treasury yields rose across the curve, driving bond prices lower. Corporate credit spreads remained extremely tight by historical standards, and high yield continued to outperform investment grade. Commodities were a strength, with gold rallying to new highs amid policy uncertainty.

This week, the markets were mixed, with last week’s rotation carrying over. The S&P 500 and Nasdaq posted modest gains, while small-cap, value, and equal-weight benchmarks outperformed, highlighting the ongoing shift in market leadership. Treasury yields fluctuated throughout the week, responding to a combination of falling unemployment, easing inflation, and solid consumer spending. Shorter-maturity Treasury yields rose as expectations for a near-term rate cut diminished, while longer-maturity yields declined. Commodities rallied, led by a sharp rise in oil and gains in gold and copper, and bitcoin rose to the highest level since mid-November.

The past few years have tested the role of bonds and fixed income in portfolios. Today, the combination of lower interest rate volatility and higher starting yields points toward a more familiar risk and return profile. Bonds could still experience volatility if inflation or policy expectations shift again, but they’re behaving more like an asset class that can provide a blend of diversification and income

This week, the markets started 2026 on a positive note, with major equity indices extending their 2025 gains as leadership shifted to smaller companies and cyclical sectors. Economic data reinforced the picture of a two-speed economy, with divergent activity across goods and services alongside softer labor conditions. The dominant market narrative centers on a soft landing, where the economy slows but avoids a recession, and the growth potential of the AI industry. Looking ahead, the main questions are whether stock market leadership will continue to broaden and how much further the Fed will cut interest rates.