Contest starting soon!

February 2026 Market Insights by StoneX 

Key Insights 

Historical Performance:  

  - February has shown mediocre performance for U.S. stocks, averaging a return of +0.1% over the last 35 years.

  - The S&P 500 began 2026 positively, rising about 1.3% as earnings season kicked off.

Volatility Trends:  

  - February typically sees increased volatility, with the VIX rising by an average of +5.5% since 1990.

Sector Rotation:  

  - The momentum of AI stocks has been waning, prompting a shift back to traditional sectors as investors seek value.

Recommendations List 

  1. Focus on Financials: 

   Look for undervalued bank stocks. Consider investing in:

     -  Bank of America (BAC) 

     -  Capital One Financial (COF) 

     -  PNC Financial (PNC) 

  1. Explore Industrials: 

Capital expenditures and infrastructure demand are likely to rise. Consider:

     -  Boeing (BA) 

     -  Union Pacific (UNP) 

     -  Honeywell (HON) 

  1. Invest in Utilities: 

Increased demand from data centers presents opportunities. Consider:

     -  Exelon (EXC) 

     -  Pacific Gas & Electric (PCG) 

     -  Algonquin Power & Utilities (AQN) 

  1. Monitor Oil Prices: Keep an eye on oil market developments, particularly regarding geopolitical tensions.
  1. Stay Alert for Earnings Reports: Watch for earnings from major companies like Alphabet, Amazon, and Nvidia, which could impact market sentiment.

Key terms

Fibonacci retracement levels: Fibonacci retracement analysis can be used to confirm an entry-level, target a take profit as well as determine your stop loss level.

Candlestick patterns: Candlestick patterns are key indicators on financial charts, offering insights into market sentiment and price movements. These patterns emerge from the open, high, low, and close prices of a security within a given period and are crucial for making informed trading decisions.

 

Community Corner

 

Best Winter Stocks according to portfoliopilot.com

  1. HLT - Hilton Worldwide
  2. WMT - Walmart, Inc.
  3. WHR - Whirlpool Corp.
  4. UA - Under Armor Inc.
  5. NKE - Nike Inc.
  6. DKS - DICK'S Sporting Goods
  7. DECK - Deckers Outdoor Corp.
  8. CPB - Campbell Soup Co.

Do you have a question that think would benefit the entire community? Are you curious about other topics on trading? Share your questions here. Ask [email protected].

 

Resources

NerdWallet's Top Investing Platforms of 2025

  • J.P. Morgan
  • Public
  • Robinhood
  • InteractiveBrokers
  • SoFi
  • Webull
  • Charles Schwab