OUR APPROACH
OUR APPROACH
Insights
Market Highlights
The year had a solid start; all of the major indices ended January with gains. The S&P rose 1.4%, the Dow gained 1.7% and the Nasdaq was up 0.9%. Small cap stocks (represented by the Russell 2000 below) significantly outperformed the other indices and rose 5.3%.
Gains were more broadly diversified across sectors than we saw for much of 2025; performance rotated away from the mega-cap tech names and moved toward value, small cap, energy and consumer staples. Stocks were boosted by healthy earnings reports, increased sector participation, and stable financial conditions. The U.S. dollar touched a four-year low, helping international stocks outperform, before staging a late month rebound. U.S. economic activity remained solid, with strong retail sales and industrial output despite weakening consumer sentiment. President Trump nominated Kevin Warsh to replace Jerome Powell, whose term as Chair of the Federal Reserve is ending in May. Markets responded to the news with volatility, reflecting concerns about Warsh’s perceived hawkish nature and investor fears of the potential implications for the Federal Reserve’s independence.
February 9, 2026
Of the asset classes we follow, the best performing one for the month was Commodities (Bloomberg Commodity Index) with a 10.0% return. Commodities saw significant volatility throughout the month, particularly precious metals, reaching record highs followed by a late in the month selloff. The worst performing was Growth Stocks (Russell 3000 Growth) with a -1.3% return.
S&P groups similar companies into 11 sectors; when we dig into the S&P 500's performance, we find that 8 of the sectors were up, 5 of them were up by more than 5%.
The best performing sector was Energy; the sector was propelled by a 15% rise in oil prices and had return of 14.4%. The biggest contributor to this outperformance was Exxon Mobil Corp., which is the largest stock in the sector and had a return of 17.5%.
The second best performing sector was Materials with a 8.6% return. The biggest contributor to this outperformance was Freeport-McMoRan, Inc., the third largest stock in the sector, with a return of 18.6%.
Financials posted the worst return at -2.6%. The biggest contributor to this underperformance was Visa, Inc., which is the third largest stock in the sector and had a return of -8.2%.
The second worst performing sector was Information Technology with a -1.7% return.
The biggest contributor to this underperformance was Microsoft Corp., which is the third largest stock in the sector and had a return of -11.0%.
Reminders
Tax season is underway. While you work to gather the necessary documents, please refer to the image below for estimated mailing dates of some of the most common tax forms. Please note, clicking the image will bring you to our website where you can then enlarge the image for easier viewing.
Thoughts from the Team
In accordance with Executive Order 14247, which was issued last March, beginning with the 2026 tax filing season most taxpayers will receive their tax refunds electronically through direct deposit, mobile payment apps or prepaid debit cards. The IRS is transitioning from paper checks to digital payments for refunds in an attempt to improve efficiency and reduce fraud. The way you file your returns will not change. If you omit your banking information, any refund owed to you may be delayed and you may receive a written request to provide your banking information. Please remember, the IRS will never request this information via text or phone call. Be alert for scams during this time of transition. The Executive Order also applies to payments to the IRS including taxes owed and fees. While checks and money orders will be accepted for now, expect that over time they will be phased out and electronic methods will become the standard.
As a reminder, in accordance with the stock market, our office will be closed Monday, February 16 in observance of President’s Day.
We hope you are keeping warm and enjoying the recent snow!
Be Well,
Disclaimers
The information contained herein, including summary/prices/quotes/statistics have been obtained from sources we believe to be reliable, but we do not guarantee its accuracy or completeness. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Any comparison to a benchmark is for comparative purposes only and actual account composition may differ. Investments cannot be made directly into an index. Past performance is not indicative of future results. Past results are not indicative of future returns. This material is provided for informational purposes only and is not intended as and may not be relied on in any manner as, legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security. This material does not intend to address the financial objectives, situation or specific needs of any individual investor.
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