Strong Economic Data Gives Reason to be Constructive on Markets

S&P 500 & Nasdaq Notch Best February in Nearly a Decade

Amid a resilient economy and strong AI-related earnings, equities shrugged off inflation worries in February. All three major indices posted new all-time highs, and both the S&P 500 and Nasdaq posted their best February since 2015. US growth (+7.2%) was among the best performers, followed by US mid-caps (+5.8%) and US large-caps (+5.2%). Aside from high yield credits (+0.3%), bonds were mostly down as 7-10 year US Treasuries fell 2.1%, investment grade corporate bonds decreased 1.4%, and the US Aggregate Bond Index declined 1.4%. Commodities produced mixed returns as crude oil and gold rose (+3.4% and +0.5%, respectively) while broad-based commodities and silver fell (-1.4% and -0.9%, respectively).