Spring is here! I have been eagerly awaiting the chance to write this post. Mind you, spring started a couple of days ago, astronomically speaking. And, of course, spring started weeks ago in more southern states. But today the sun is shining, the birds are making a heck of a racket, and my son went off to school in shorts. So, it seems fair to call this the first day of spring, at least for me.

Last week saw the release of a number of important economic updates, including February’s retail sales and industrial production reports and a look into home builder confidence and new home construction. Many of the reports came in below expectations, driven in large part by the severe winter storms that affected much of the country throughout February. This will be another busy week for updates, with highlights to come on housing sales, durable goods orders, and personal income and spending.

Today, I'd like to provide an update on the coronavirus, including the economic and market implications. The medical situation continues to improve, as the vaccination campaign moves forward. Still, case growth remains above the levels seen between the second and third waves, and positive rates have not improved in weeks. We still have a very real pandemic on our hands.

Today's post is from Anu Gaggar, senior investment research analyst.

Today’s post is from Peter Essele, vice president of investment management and research.

The biggest financial and economic story in recent days has been around interest rates. Inflation worries flared up again with the passage of the most recent federal stimulus bill, on fears that dumping trillions of dollars into the economy would drive demand—and prices—up. Rates followed, with the yield on the 10-year U.S. Treasury note rising from 1.07 percent to a peak of 1.59 percent on March 8. Stock prices, especially for growth stocks, reacted by dropping, as higher rates usually mean lower valuations.

Last week saw a number of important economic data releases, with a focus on February’s inflation reports and a first look at consumer confidence in March. Consumer confidence increased by more than expected to start the month, bringing the University of Michigan consumer sentiment index to a one-year high. This week will be packed with updates once again. Highlights will include February’s retail sales and industrial production news and reports on home builder confidence and new home construction.

As a reminder, this written update will be followed next week by a video update, and then back to a written post on a weekly basis. Thanks as always for reading and watching.

My colleague Sam Millette, senior investment research analyst on Commonwealth’s Investment Management and Research team, has helped me put together this month’s Market Risk Update. Thanks for the assist, Sam!!

Equity markets rebounded in February despite some late-month volatility driven by a spike in U.S. interest rates. The S&P 500 gained 2.76 percent, while the Dow Jones Industrial Average rose by 3.43 percent. Riskier assets were hit hardest by the volatility at month-end, and the technology-weighted Nasdaq Composite gained 1.01 percent. Despite the overall positive results, the month-end volatility served as a reminder of the potential risks markets still face.

My colleague Sam Millette, senior investment research analyst on Commonwealth’s Investment Management and Research team, has helped me put together this month’s Economic Risk Factor Update. Thanks for the assist, Sam!

The economic recovery picked up speed in February, driven by public health improvements and the federal stimulus checks that reached bank accounts. We saw a positive turnaround in consumer confidence and spending figures, along with an acceleration in hiring. We also saw signs of continuing normalization of long-term interest rates, which is a positive signal that the economic recovery remains on track.