For the first time, the S&P 500 index rallied above the 5000 mark, closing February at roughly 5096, up 5.1 percent. Meanwhile, the yield on the 10-year U.S. Treasury Note ticked up to 4.25 percent from 3.99 percent at the end of January and 3.88 percent at year-end. Additionally, the price of West Texas Intermediate oil rose about 3 percent in the month to roughly $78.50 a barrel.
Inflation as measured by Core Personal Consumption Expenditures (Core PCE) – the Fed’s preferred inflation gauge – rose 0.4 percent month-over-month. On a 3-month and 6-month annualized basis, Core PCE increased 2.6 percent and 2.5 percent, respectively. On a year-over-year basis, Core PCE has fallen from a peak of 4.5 percent in late 2021 to 2.8 percent currently, the lowest rate since April 2021.