The major U. S. stock indexes concluded the week on a downbeat note, marking their longest losing streak in a year. The S&P 500 fell to a new low for 2026, dragged down by technology and materials sectors. The Dow Jones Industrial Average shed 0.26%, closing at 46,558.47, while the S&P 500 declined by 0.61% to 6,632.19, and the Nasdaq Composite slid 0.93% to 22,105.36. Canada's TSX Composite Index also felt the pressure, closing at 32,541.93, a decline of nearly 300 points.
Several factors contributed to the market's downturn. Rising oil prices, fueled by geopolitical tensions including Iran's blockade of the Strait of Hormuz, amplified inflation concerns. West Texas Intermediate crude futures settled at $98.71 per barrel, a 3.11% increase. Economic data also painted a mixed picture. The Personal Consumption Expenditures (PCE) price index, a key inflation gauge, rose by 0.3% in January, with core PCE increasing 0.4%. Simultaneously, the Bureau of Economic Analysis revised its estimate for fourth-quarter real GDP down to 0.7%, signaling a sharper economic slowdown than initially anticipated.
Adding to the negative sentiment, Statistics Canada reported a surprise loss of 84,000 jobs in February, pushing the unemployment rate up to 6.7%. This domestic labor market deterioration pressured financial and technology stocks. Some individual stocks also experienced significant declines. Adobe (ADBE) shares fell 7.6% following the announcement of its CEO's departure. Ulta Beauty (ULTA) also saw a sharp drop, sinking 14.24% due to soft full-year profit and sales guidance.
Despite the overall market weakness, some sectors showed resilience. Utilities and consumer staples led the gainers in the S&P 500, advancing 0.94% and 0.54%, respectively. In Canada, lower-risk areas of the market like consumer non-cyclicals and real estate also saw gains. However, these gains were offset by losses in the basic materials sector, as the price of gold moved lower. Investors are now looking ahead to next week's Federal Reserve meeting for further clues about the central bank's monetary policy plans.
