Investment Perspectives
Welcome to our monthly briefing, where we provide a comprehensive analysis of recent economic events and their implications for the financial markets. February’s commentary revealed a meaningful shift beneath the surface of U.S. equity markets as leadership broadened beyond mega‑cap technology stocks. Highlights from February’s Briefing:
- Market leadership broadened significantly, with value stocks outperforming growth, small caps beating large caps, and the S&P 500 Equal‑Weighted Index outpacing the traditional cap‑weighted benchmark—continuing a rotation underway since late 2025.
- Mega caps underperformed, particularly the Magnificent 7, amid concerns about heavy AI‑related capital expenditures. Despite this soft patch, the 10 largest U.S. companies still account for roughly 40% of the S&P 500.
- A weaker U.S. dollar boosted Q4 2025 results for companies with large international revenue exposure. Foreign sales translated into higher earnings, lifting growth rates for exporters relative to domestically focused businesses.
- Earnings concentration remains high. Since the end of 2022, the 10 largest stocks in the S&P 500 have driven about two‑thirds of the index’s total EPS growth, underscoring how much performance still hinges on a handful of firms.
Read the February 2026 Monthly Briefing for insights from Chief Market Strategist Julie Biel, CFA
Contact us to receive our monthly briefing directly in your inbox.