• February was a challenging month for U.S. equities as growing scrutiny of AI-related capital expenditures and their associated impact on business models took a toll on large-caps, leading to the third weekly decline for the S&P 500. A worse than expected producer-price reading on the final trading day created renewed inflation jitters and dampened hopes for Fed rate cuts, with The 500 closing down 0.8% for the month.
  • Market leadership shifted toward smaller companies, with the S&P MidCap 400 and the S&P SmallCap 600 up 4% and 2%, respectively, outperforming their large-cap peers.
  • Large-cap sector performance was mixed, reflecting a retreat from Big Tech optimism and a return to defensive sentiment. Utilities led, rising 10%, while Communication Services and Consumer Discretionary declined.dashboard-us-2026-02