2026 | March 2

The Markets

Stocks Down

U.S. stock indexes gave up much of the ground they had gained the previous week, extending a pattern of alternating gains and losses that’s characterized early 2026. The Dow finished down 1.3% for the week, the NASDAQ declined 0.9%, and the S&P 500 slipped 0.4%.  

Prices of government bonds rose on Friday, sending yields lower, to cap a month of strong fixed-income performance. The yield of the 10-year Treasury fell to the lowest level in more than four months, finishing around 3.96% on Friday. At the end of January, the yield was 4.26%.

January’s modestly positive momentum didn’t extend into February for the S&P 500 and the NASDAQ, as both indexes finished in negative territory, with the former down 0.9% and the latter 3.3% lower. In contrast, the Dow eked out a 0.2% gain, extending its string of positive months to 10 in a row. 

The seven U.S. mega-cap stocks known as the Magnificent Seven continued to drive a disproportionate share of the broader market’s earnings growth in the just-concluded earnings season. Those seven stocks generated average fourth-quarter earnings growth of 27.2% versus a 9.8% rate for the other 493 companies in the S&P 500, according to FactSet. Mag Seven earnings growth has now exceeded 25% in 10 of the past 11 quarters.

Two months into 2026, U.S. equity sectors that trailed the broader market last year have moved up to the top of this year’s performance rankings. Through February, energy, materials, and consumer staples were the top three sectors on a year-to-date basis. Meanwhile, last year’s leaders, communication services and information technology, were lagging.   

After pausing in recent weeks, the year-to-date rally in gold prices resumed, and the precious metal climbed closer to the record high of more than $5,500 per ounce set in late January. Late Friday, gold futures were trading around $5,290. Silver prices also climbed during the week.

For the second week in a row, a higher-than-expected inflation indicator raised concerns about price pressures. Friday’s Producer Price Index report on wholesale prices showed a 0.8% January increase relative to the previous month — more than double the rise that most economists had expected. A Personal Consumption Expenditures Price Index report released the previous week also topped forecasts. 

A monthly labor market report due out on Friday will show whether January’s stronger-than-expected jobs growth extended into February. In January, the gain of 130,000 jobs was more than double the number that most economists had forecast and up from 48,000 in December. Moreover, January’s unemployment rate slipped to 4.3% from 4.4% the previous month.  

Source: John Hancock Investment Management

Schwab Tips to Avoid Scams

Charles Schwab recently sent out an email regarding ways to spot and stop imposter scams. We certainly can’t stress enough about protecting yourself from scams, so we wanted to pass along this good information.

Investment scammers are getting more savvy and increasingly personal. They may pose as investment professionals, leaders of trusted financial institutions, and even Schwab employees, all to gain your confidence and trust. With vigilance and a few tips on imposter tactics and techniques, you can recognize these fraudsters and steer clear of their traps.

Here are four signs to watch out for:

Too-good-to-be-true offers. If you’re getting an unsolicited investment offer, especially one claiming guaranteed or unusually high returns, watch out. Opportunities that sound too good to be true probably are.

High-pressure tactics. Messages or social media ads that demand your attention are trying to press your panic button. Don’t fall for any urgent requests to act immediately to “protect” your account, avoid losses, or accept a special offer.

Contacts from out of the blue. Unexpected messages you receive through social media, messaging apps, texts, or emails you didn’t initiate are often a good sign you’re being targeted by a fraudster.

Access and download requests. Think twice if you receive any requests to download software, share one-time passcodes, or allow remote access to your device. You never want to give fraudsters access to your accounts or private information.

If you encounter any of these:

Stop. Don’t give out or confirm any personal information (even if they already have it). Never send money, open new accounts, or take any action without stopping to verify what you are doing is legitimate. We'll never contact you through social media or messaging apps to offer investments or request personal information.

Drop. Scammers can’t reach you if you disengage. Hang up the call, ignore the chat, swipe past the ad, or leave the group and then block the phone number or profiles so they can't contact you again. Then report the incident as spam or scam to the company or platform where you received it.

Report. If you received a suspicious call or notice any suspicious activity on any of your Schwab accounts, please contact your advisor immediately, or call Schwab Alliance™ at 1-800-515-2157 (or +1-602-355-3405 if calling from outside the U.S.).

Stay informed, stay protected.

We’re always ready to help at the number shown above. You can strengthen your information security by learning more about imposter fraud and checking out other useful tips at our Security Knowledge Center.

What Do You Know About AI?

Kevin Warsh, who has been nominated to lead the Federal Reserve (Fed), faces a significant challenge. Along with the other members of the Federal Open Market Committee, he will be responsible for monetary policy and economic stability during a period of enormous innovation. AI tools are likely to change business models and workflows, just as the introduction of the printing press, electricity, the telephone, and the automobile did. See what you know about AI by taking this brief quiz.

1. GenAI is best known for helping people:

a. Write difficult math equations

b. Generate new content like text, images, or video

c. Reach conclusions without any data

d. Wash cars and bikes

2. Which of these products relies on AI?

a. Navigation apps

b. Self-driving cars

c. Virtual assistants

d. All of the above

3. In late 2024, Gallup asked Americans whether they had used AI-enabled products during the previous week. Thirty-six percent said yes, 50 percent said no, and 14 percent weren’t sure. When survey participants were questioned further, it turned out many were using at least one AI-enabled product without realizing it. What percentage used AI-enabled products during the previous week?

a. 36 percent

b. 64 percent

c. 83 percent

d. 99 percent

4. The first AI chatbot was named Eliza. The bot was developed at MIT. When it was given a “Doctor” prompt, it would interact with the user as though it was a therapist and the user was a patient. When was this bot built?

a. 1941 to 1944

b. 1964 to 1967

c. 2002 to 2005

d. 2016 to 2020

Answers: 1) b; 2) d; 3) d; 4) b

Phone: (615) 709-8709

Fax: (615) 709-8709

eMoney

Charles Schwab

Advyzon

Emily Triano

Operations Manager

emily@ajadvice.com

Maya Laws

Operations Associate

maya@ajadvice.com

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