Market Recap - Week of February 23 through February 27, 2026

Gordon Achtermann, CFP®, CSRIC®, MBA
12 minutes ago
3 min read

The S&P 500 edged down 0.4% this week, led by the technology and financial sectors.

The index ended the week at 6,878.88. With Friday the last trading day of the month, the market benchmark fell 0.9%in February. It's still up 0.5% for 2026.

In economic news, the US producer price index rose by 0.5% in January following a 0.4% increase in December, according to the Bureau of Labor Statistics. This was higher than the 0.3% gain expected in a Bloomberg survey.

After excluding the more volatile food and energy prices, core PPI rose by 0.8%, higher than the 0.3% gain anticipated and the previous month's 0.6% jump. Over 2 months that's a jump of 1.4% in core production costs.

The technology sector had the largest percentage drop of the week, falling 2.2%, followed by a 2% decline in financials and a 0.5% loss in consumer discretionary. Industrials also edged lower.

On the upside, utilities rose 2.9%, followed by a 2.7% increase in consumer staples, a 2.1% gain in health care, and a 2% rise in energy. Materials, real estate, and communication services also edged higher.

Last (2) Week’s Economic Reports

Q4 GDP increased at an annual rate of 1.4%, half of the 2.8% projection.
The December personal consumption index rose 0.4% for both the total rate and the core rate that excludes food and energy. This was above the forecast for 0.3% and the prior month's 0.2%.
Delayed reports on November and December housing starts and new home sales were delivered, showing growth, although the total 2025 numbers were down from 2024.
House prices edged up 1.4% from last year - the slow growth is good news for buyers, but bad for sellers.
Initial unemployment claims rose slightly to 212K last week.

Up Next

On the economic calendar, February auto sales are expected on Monday, while the month's payrolls and unemployment are set to be released on Friday.

Next week, CrowdStrike Holdings (CRWD), Broadcom (AVGO), and Costco Wholesale (COST) are among the companies scheduled to release quarterly results.

S&P 500 Sector and Stylebox Returns

So far in 2026, Value is the star of the US stock market.

How to read the stylebox: The horizontal axis represents investment style, which can be value, blend, or growth for stocks and mutual funds. The vertical axis represents market capitalization for stocks, categorized into large, medium, and small companies. The number in each box represents the percentage growth of the category that is the intersection of the column and the row. For example, large-cap value is in the top-left corner box of the 9 boxes, so the large-cap value category is up (or down) by the percentage shown in that box.

Thought of the Week

After declining over 9% last year, marking its worst performance since 2017, the dollar has remained under pressure this year. Investors are questioning whether this reflects a structural shift away from the U.S. and how they should position portfolios.

A recent report from the Bank for International Settlements suggests demand for U.S. assets has largely held steady. What has changed is how foreign investors hold these assets. For years after the GFC, they bought U.S. assets unhedged, riding the wave of dollar appreciation. However, increased uncertainty, especially after shifts in U.S. trade policy, has led many to raise hedge ratios, putting downward pressure on the greenback. So, it was more ‘Hedge America’ than ‘Sell America’ that drove the dollar down.

Additionally, the narrowing of interest rate differentials, as shown in the chart of the week, has contributed to the dollar’s weakness. The 2-year yield reflects market expectations for the policy path. Currently, markets are pricing in 25 to 50 bps of Fed cuts this year, while the Bank of Japan and Reserve Bank of Australia are expected to hike. If policy outcomes exceed what’s priced in, the yield differential could compress further, adding downward pressure on the dollar.

Lastly, even after its recent slide, the dollar remains about 35% above its GFC lows. This suggests the administration may be comfortable with some additional weakness, particularly as it would support efforts to narrow the trade deficit. For investors, a softer dollar could amplify returns abroad, strengthening the case for international diversification at a time when portfolios remain heavily tilted toward the U.S.

Source: JP Morgan (edited)

Thank you to all who attended this month's market Update webinar!

You can watch the replay here:

MrBeast Raises $200M & Gold's Worst Day Since 1980 – Monthly Market Update Webinar – February 2026

The episode is also available wherever you listen to podcasts!