More volatility returned in February, with the S&P 500 declining just over 1% for the month. International markets were largely positive, and gold also finished higher. Many economic data points — along with corporate earnings — continue to show resilience. However, on the final trading day of the month, the Producer Price Index (PPI) came in higher than expected, which contributed to a late-month selloff as investors reassessed inflation expectations and the potential path of interest rates.

As we wrote in mid-February, the Supreme Court overturned several of former President Trump’s tariffs, and markets are now also monitoring the developing conflict with Iran. In the near term, rising geopolitical tensions could place upward pressure on oil prices, which may translate into higher transportation and input costs. With economic shifts, AI-driven disruption, and geopolitical uncertainty all in play, this environment underscores the importance of maintaining a balanced and diversified portfolio.

Our approach is to position portfolios proactively — as much as possible — ahead of major events in order to help manage volatility, pursue long-term returns, and keep clients aligned with their financial goals. As always, please reach out to your advisor if you have any questions.