From the desks of Stanley Katz & Lauren Madera
WISHING ALL TIME CHANGERS A SPEEDY RECOVERY FROM NATIONAL “HOW DO I CHANGE THE CLOCK ON MY MICROWAVE” DAY!
The three major U.S. stock market indices delivered a tale of two markets this week (i.e., DJIA: +0.95%, S&P 500: -0.98%, Nasdaq: -3.47%). Blue chips flourished while tech floundered in what analysts are calling “Flip-Flop February” – a dramatic shift away from the market’s former darlings. As Schwab’s Liz Ann Sonders notes, “The Magnificent Seven have encountered notable challenges in the early months of 2025, marking a departure from their previous market dominance.” This reality check is particularly stark when examining the rankings: not one of the Mag 7 stocks appears among the S&P 500’s top 50 performers in 2025, with Tesla plummeting to dead last. Only Meta is outperforming the broader index, a remarkable turnabout for companies that have dominated the leaderboard in recent years.
This shifting landscape has been driven by lingering economic uncertainty, shrinking GDP projections, and mounting concerns over tariff impacts. Argus Research highlights how February’s economic data sent mixed signals: strong employment figures but weakening consumer sentiment. Their analyst, Jim Kelleher, observes that “leadership in the U.S. stock market flipped in February” as investors rotated into traditionally “boring” sectors like Healthcare, Financials, and Consumer Staples. DeepSeek’s AI breakthrough similarly shook tech investors’ confidence, though the real story may be less dramatic than headlines suggest. Markets appear to be rediscovering the value of balance. As Kelleher concludes, “Markets with good breadth would tend to be more durable and better positioned to withstand adverse news than thin and narrowly led markets.”
Below are links to a number of third-party research reports that we have read and analyzed over the past week. We hope you will find the information interesting, useful, and worthwhile.
Schwab:
Argus:
Capital Group:
James Investments:
Northern Trust:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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