2 min read
As I reflect on the week ending February 27, 2026, it's clear that markets experienced a modest pullback. The S&P 500 declined 0.7%, while the Dow Jones and Nasdaq fell 1.5% and 0.5%, respectively. The S&P MidCap 400 and Russell 2000 also dropped, with losses of 1.1% and 1.4%, respectively. On the other hand, international markets showed some resilience, with the MSCI EAFE and MSCI Emerging Markets indices rising 0.5% and 0.3%, respectively.
A closer look at sector performance reveals that Utilities, Consumer Staples, and Energy led the way, with gains of 2.8%, 2.1%, and 1.9%, respectively. This can be attributed, in part, to the recent surge in oil prices, which may have been driven by concerns over potential delays in the Iran nuclear deal, as noted by analysts. The Healthcare sector also saw a notable increase of 1.9%, potentially due to the ongoing discussion around Medicare's financial sustainability, with reports indicating that the program may run out of money 12 years earlier than expected.
On the other hand, the Technology and Financials sectors lagged, with declines of 1.6% and 2.2%, respectively. The Technology sector's struggles may be linked to the recent announcements from companies like Block, which plans to cut over 4,000 jobs due to AI-driven efficiencies. This news, combined with Nvidia's tough week, may have contributed to the sector's underperformance. Meanwhile, the Financials sector's decline could be tied to concerns over bank performance, with some strategists warning about the potential risks associated with bank-loan ETFs.
Three significant stories shaped the week's market action: the hot inflation report, which led to a drop in the 10-year yield below 4% due to stagflation risks; the surge in oil prices, potentially driven by worries over the Iran nuclear deal; and the ongoing discussion around AI's impact on the job market, with companies like Block and Nvidia making headlines. These stories not only influenced sector performance but also had a notable impact on individual companies, such as United Airlines, whose stock was affected by rising oil prices, and FanDuel's parent company, which saw its stock tumble.
As we look ahead to the next week, it's essential to keep an eye on the evolving landscape of inflation, interest rates, and technological advancements. With the market's attention focused on these key themes, it will be interesting to see how investors respond to the ongoing developments in the AI space, the potential implications of rising oil prices, and the continued discussion around Medicare's financial sustainability.
This commentary is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results.