US Equity Markets declined last week due to ongoing concerns about AI disruption within technology, inflation data above expectations, and likely attacks on Iran which came to fruition over the weekend. The S&P 500 fell 0.4% for the week and is now only up 0.5% for the year. The Nasdaq dropped another 1.0% for the week to bring its losses for the year to down 2.5%, while the Russell 2000 (small cap stocks) was down 1.2% for the week and now up 6.1% for the year.
Global Equity Markets continued higher last week, as several Asian markets hit all-time highs and European equities rose following the tariff news in the US. Developed Markets increased 0.8% for the week and are now up 9.1% for the year. Emerging Markets surged 3.3% for the week to bring their gains for the year to 15.3%.
US Producer Inflation came in much higher than forecasts. The Producer Price Index (PPI) for January showed price gains up 2.9% from a year ago, much worse than the 1.6% expected though down slightly from 3.0% in December. Core PPI, which excludes food and energy, rose 3.6% from a year ago, also worse than the 2.0% expected and up from 3.3% in December. Investor concerns increased that the higher inflation for producers would flow down to higher prices for consumers or reduce corporate profit margins.
Of Interest to Us
With this weekend's attacks on Iran, global economic eyes are now focused on the Strait of Hormuz. The Strait of Hormuz is a narrow 21-mile corridor linking the Persian Gulf to the waterways leading to the rest of the world. It is a significant trade route where roughly 20% of the world's oil, refined products, and liquefied natural gas travel through. There are no significant alternative routes, so investors will likely be focused on whether that trade route is disrupted either via water mines laid by Iran or targeted Iranian attacks on trade vessels, which could prove disruptive to the global economy.
Market Data
for the week ending 2/27/2026
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