Equities continued to slide lower, with the S&P 500 falling 3% and the Nasdaq 3.4%. Once again, Energy was the only positive sector in February, adding another 7.1% to last month’s 18.8% surge. Interest rate-sensitive sectors such as Communication Services, Technology, and Real Estate took the worst hits in February.
Treasury rates got a big boost in February as investors fled to safety, largely due to uncertainty caused by the Russian invasion of Ukraine. T-Bills (1-Month Treasury Rate) doubled from 0.03% to 0.06%, while the 2-Year gained 26 basis points, the most of any US treasury rate, up from1.52% to 1.79%. Federal Reserve officials also signaled a March rate hike is still the plan. Around the world, the yields of both Canada’s and Italy’s long-term bonds surpassed the US 10-Year, while Germany’s long-term rate re-entered positive territory.
Inflation climbed for the fifth straight month, registering a level of 7.5%. The price of gold rose by 5% in February, and oil continued its climb toward $100. In the housing market, the number of new single-family houses sold receded 4.5% month-over-month, yet the supply of existing homes reached another all-time low.
Continue reading: https://get.ycharts.com/monthly-market-wrap-february-2022/
Cerro Pacific Wealth Advisors LLC is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Cerro Pacific Wealth Advisors LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Cerro Pacific Wealth Advisors LLC unless a client service agreement is in place.
