Sectors Shift as Small Caps, Bonds Surge

Emerging market stocks lead year-to-date gains while international equities drive returns. Small caps climb 0.8% in February, topping large caps that dip 0.8%, fueled by falling borrowing costs, valuation discounts, and robust earnings momentum. Bonds rally hard as longer-term rates drop the most since February 2025, thanks to easing inflation, slower spending, and equity volatility from AI hype. Read more about this...