The Markets (as of market close February 27, 2026)
Wall Street closed the final week of February on a weaker note, with each of the major benchmark indexes finishing lower. Stubborn inflation data and continued cooling in major tech and AI stocks weighed on sentiment. A stronger-than-expected Producer Price Index report increased concerns that the Federal Reserve may keep interest rates elevated longer than anticipated. Geopolitical tensions, particularly escalating U.S.-Iran conflict, added to uncertainty and supported higher crude oil prices. Financials and information technology lagged, while defensive sectors including consumer staples, utilities, and health care outperformed. Treasury yields declined, with the 10-year falling 12 basis points for the week.
Last Week’s Economic News
-
Producer prices rose slightly in January, and are up 2.9% year-over-year.
-
Core producer prices (excluding food, energy, and trade services) increased a bit in January, marking the ninth consecutive monthly rise and up 3.4% over the past year.
-
Services prices climbed, while goods prices declined.
-
Weekly jobless claims increased to 212,000, up 4,000 from the prior week; continuing claims fell to 1.833 million.
-
Gasoline prices are up slightly on the week, but remain well below year-ago levels.
Eye on the Week Ahead
February’s employment report will be released this week after January showed 130,000 new jobs added. Stock traders speculating, will also react to the latest purchasing managers’ surveys for manufacturing and services to gauge the current economic momentum.
Have a nice week!
Sincerely,
Robert G. Carpenter