WEEKLY MARKET RECAP – FEBRUARY 27, 2026

U.S. equities surrendered much of the prior week’s gains, continuing the back-and-forth pattern that has defined the opening months of 2026. The Dow fell 1.3% for the week, the NASDAQ dropped 0.9%, and the S&P 500 edged down 0.4%.

Treasuries rallied late in the week, capping a strong month for bonds. The 10-year Treasury yield declined to about 3.96% on Friday, its lowest level in more than four months and down sharply from 4.26% at the end of January.

February proved less favorable for large-cap growth benchmarks. The S&P 500 finished the month down 0.9%, and the NASDAQ slid 3.3%. The Dow, however, managed a modest 0.2% gain, marking its tenth consecutive positive month.

Inflation data added fresh uncertainty. January’s Producer Price Index rose 0.8% from the prior month, more than double economists’ expectations. The previous week’s Personal Consumption Expenditures report had also come in above forecasts, reinforcing concerns that price pressures may be proving persistent.

Sector leadership has shifted notably in early 2026. Groups that lagged last year have moved to the forefront, with energy, materials, and consumer staples leading performance through February. Meanwhile, 2025’s top performers—communication services and information technology—have fallen behind.

The “Magnificent Seven” mega-cap stocks once again accounted for a disproportionate share of earnings growth. According to FactSet, those companies posted average fourth-quarter earnings growth of 27.2%, compared with 9.8% for the other 493 S&P 500 constituents. The group has now delivered growth above 25% in 10 of the past 11 quarters.

Gold resumed its upward climb after a brief pause, moving closer to its late-January record above $5,500 per ounce. Futures were trading near $5,290 late Friday, while silver also posted weekly gains.

Investors will turn their attention to Friday’s labor market report to see whether January’s stronger-than-expected job growth carried into February. In January, payrolls increased by 130,000—more than double expectations—while the unemployment rate declined to 4.3% from 4.4%.