Chartbook February 2026

Market Commentary – March 17, 2026

Overall, February’s equity action points to a market in transition, with investors reallocating from concentrated mega-cap leadership toward value-oriented, cyclical, and defensive sectors, reflecting confidence in the durability of economic activity despite ongoing debate around AI investment and selective growth headwinds. We view the mixed performance as a sign rotation beneath headline indices rather than broad risk-off sentiment. Large-cap growth stocks, particularly technology and AI-related names, experienced notable declines while mid- and small-cap stocks outperformed. Sector performance illustrated the rotation as defensive and commodity-linked groups led the advance, including Utilities (+10.4%), Energy (+9.4%) and Materials (+8.4%). In contrast, Technology (-3.9%), Communication Services (-5.1%), and Consumer Discretionary (-5.4%) lagged. Non-US equities performed well as developed (MSCI EAFE) and emerging markets (MSCI EM) gained 4.7% and 5.3%, respectively.