March 1, 2026

Despite continued headlines surrounding tariffs, affordability challenges, immigration policy, and geopolitical tensions, the U.S. economy continues to demonstrate resilience and steady progress. Consumer experiences remain mixed; more affluent households have largely absorbed the higher prices accumulated over the past several years, while lower-income families, particularly those with limited financial assets, continue to feel pressure from modest wage growth and elevated food costs.

Domestic manufacturing activity has strengthened, and inflation continues to trend lower. While progress has been encouraging, inflation has not yet declined sufficiently to reach the Federal Reserve’s target, limiting the likelihood of aggressive rate cuts in the near term. Interest rate policy remains one of the most significant variables for equity markets. Lower rates generally reduce borrowing costs for consumers and businesses and tend to provide meaningful support for small- and mid-sized companies, which are typically more sensitive to financing conditions.

You should have received your 2026 Key Financial Data summary by now. Many clients find this report helpful in understanding their projected tax bracket and capital gains exposure, both of which are directly tied to taxable income levels. As always, please reach out if you would like to review your figures in more detail.

Year to date, the Dow Jones Industrial Average, S&P 500, and NASDAQ are at 1.90%, 0.49%, and -2.47%, respectively. The 10-year and 2-year Treasury yields are approximately 4.02% and 3.42%.