Markets In Focus: The Week That Was and What’s On Tap Week-Ending 2/27/2026
THE WEEK THAT WAS
For the week ending February 27, 2026, major U.S. equity indices experienced mixed performance amid persistent inflationary signals and thematic pressures. The S&P 500 posted a modest decline of -0.4% (reflecting late-week selling pressure), while the tech-heavy Nasdaq Composite fell more sharply, down roughly -1.0% to -2.0%, as AI-related concerns intensified. In contrast, the Russell 2000 was the worst performer, down 1.2%, reflecting growing inflation concerns, as well as some rumblings of an economic slowdown. The Invesco S&P 500 Equal Weight ETF (RSP) outperformed the cap-weighted indices, underscoring a clear shift from mega-cap tech.
Key Economic Releases
January’s Producer Price Index (PPI) came in hotter than anticipated, with headline PPI rising +0.5% month-over-month and +2.9% year-over-year, while core PPI surged +0.8% MoM and +3.6% YoY. Drivers included stubborn services pricing, widening margins in areas like professional equipment wholesaling and apparel/retail, and lingering inflationary pressures that challenge the disinflation narrative. February Consumer Confidence edged higher to 91.2 from a revised 89.0, providing ongoing mixed signals on the state of the consumer.
Earnings Highlights
Earnings releases during the week delivered mixed but noteworthy results. NVIDIA reported record revenue around $68 billion, fueled by robust data center and AI growth, yet faced post-earnings pressure as ongoing hyperscaler cap-ex spending concerns resurfaced. Dell posted blowout results with strong AI server momentum, revenue beats, and upbeat guidance, reinforcing hardware tailwinds in the space, and provided additional metrics on the strength of the AI infrastructure build. We believe the AI trade is currently moving on sentiment and not fundamentals. Home Depot offered mixed signals on consumer and housing demand, highlighting softer discretionary spending in the face of a generally weakening housing market.
Sector and Thematic Notes
Tech and AI stocks continued to face headwinds, exacerbated by emerging rumors of cracks in AI software-related credits within private credit markets—potentially spilling over to life insurers with large holdings, college endowments, and many UHNW portfolios reliant on alternative allocations. Note that Legacy Bridge does not utilize private credit or private equity due to what we call the false promises of private investments. Better-performing sectors included defensives such as consumer staples, healthcare, and energy, alongside.
Outlook
Late-week developments triggered a flight to safety into the weekend amid these crosscurrents. February has been a volatile month, and we are happy to put it behind us. The question is whether March will come in like a lion or a lamb—our bet, at least near term, is that volatility will continue into the first half of the month.
THE WEEK AHEAD
As we head into the first full week of March, the economic docket features important manufacturing and services sentiment surveys early on, capped by the highly anticipated February employment report on Friday—providing key insights into the economy’s momentum amid ongoing expansion signals.
Key Macro Releases
The week kicks off with the ISM Manufacturing PMI on Monday, March 2, following January’s solid expansion to 52.6, marking the sector’s first growth in a year and the strongest since 2022. This sets the stage for mid-week ISM Services PMI (around March 4), which has consistently shown resilience in the broader economy. The highlight arrives Friday, March 6, with the February Employment Situation report, including Nonfarm Payrolls, unemployment rate, and wage growth. Recent Markets In Focus: The Week That Was and What’s On Tap Week-Ending 02/27/2026 labor trends point to continued steadiness, with January adding 130K jobs and unemployment holding low—expectations lean toward sustained but moderate gains supportive of growth without overheating.
Notable Earnings
Earnings season continues to taper, but several key reports remain relevant. Consumer-focused retailers such as Target (TGT), Kroger (KR), Costco (COST), and Best Buy (BBY) will offer updates on household spending patterns and retail health. Complementing these are AI and technology-linked names including Broadcom (AVGO), CrowdStrike (CRWD), and Marvell (MRVL), whose results should shed light on persistent demand in semiconductors, cybersecurity, and AI infrastructure—sectors that continue to underpin market leadership.
DISCLOSURES
The information presented is the opinion of Legacy Bridge, LLC., and does not reflect the view of any other person or entity. The information provided is believed to be from reliable sources, but no liability is accepted for any inaccuracies. This is for information purposes and should not be construed as an investment recommendation. The opinions expressed are subject to change without notice. Reliance upon information in this material is at the sole discretion of the reader. This information is not intended to be complete or exhaustive and no representations or warranties, either express or implied, are made regarding the accuracy or completeness of the information contained herein. This material may contain estimates and forward-looking statements, which may include forecasts and do not represent a guarantee of future performance. Past performance is no guarantee of future performance. Investing involves risks. Legacy Bridge LLC., is an investment adviser registered with the U.S. Securities and Exchange Commission.
The S&P 500 generally represents performance of 500 large companies listed on exchanges in the U. S. It is one of the most commonly followed equity indices. The Nasdaq Composite Index is a market-weighted index that measures the performance of more than 3,000 common equities listed on the Nasdaq Composite Market. The Russell 2,000 Index is a market-cap weighted index that measures the performance of approximately 2,000 of the smallest companies in the Russell 3,000 Index. The MSCI ACWI captures Large and Mid-Cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries. With 2,921 constituents, the index covers approximately 85% of the global investable equity opportunity set. FactSet Research System is a financial data and software company that provides research for Wall Street professionals and individual investors.
