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Market Highlights

• Risk-off sentiment took hold of markets in February with domestic stocks falling and bond prices rising as traders grappled with extended valuations, policy uncertainty, and mixed economic and inflation data.
• The S&P 500 fell -1.30% for the month amidst an uptick in volatility.
• US Small and Mid-cap stocks reversed after a strong January, with the small cap Russell 2000 index falling -5.35% in February.
• More defensive and rate-sensitive sectors of the S&P 500 outperformed during the month, with Consumer Staples (+5.70%), Real Estate (+4.22%), and Energy (+3.97%) leading the way.
• Value stocks continued their recent outperformance relative to Growth. The Russell 1000 Value was up +0.41% in February and is now up +5.05% YTD compared to -3.59% for the month and -1.69% for the year for the Russell 1000 Growth.
• Developed International (+1.94%) and Emerging Markets (+0.48%) also outperformed during the month, driven by increased government spending in Europe and a rebound in Chinese equities.
• Yield fell in February with the 10-year Treasury yield moving from 4.54% down to 4.22%. The Bloomberg US Aggregate Index was up +2.20% for the month and is now up +2.74% for the year.

Sources: 

Morningstar Direct, MSCI

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