Stocks were mixed this week: S&P 500 closing at 6,740.02 (-1.24%), Nasdaq closing at 22,387.68 (+0.29%), Dow Jones closing at 47,501.55 (-2.65%), Russell 2000 closing at 2,525.30 (-3.20%). Tech was the standout, with the Nasdaq outperforming the S&P 500 by 1.5 percentage points.

The 10-year Treasury yield climbed 13 bps to 4.13% — rising yields signal the bond market is pricing out rate cuts, which puts pressure on rate-sensitive growth stocks and long-duration bonds. Gold fell 3.75% to $5,146.10. The drop — unusual during an equity selloff — points to dollar strength as the dominant force rather than a flight to safety. The dollar strengthened +1.19% (DXY: 98.98), a headwind for multinational earnings and international ETF holders.

Trade policy tensions added a layer of uncertainty, with tariff headlines raising the cost outlook for import-dependent sectors.

On the economic data front, Consumer Confidence (CB, February) beat expectations (91.2 vs. 88.4 forecast); PPI (January 2026, MoM) beat expectations (0.5% vs. 0.3% forecast). The combination of hot inflation prints and resilient consumer sentiment reinforces a higher-for-longer rate outlook — the Fed has little incentive to cut while both conditions hold.

Next week's calendar is heavy. CPI will be the headline print — a hot number extends the higher-for-longer trade, a cool read revives rate-cut optimism; PCE (the Fed's preferred inflation gauge) will be closely watched for confirmation of the inflation trend. Volatility around these releases is likely — position before the prints, not after. Secondary data to watch: JOLTS Job Openings (January), Michigan Consumer Sentiment (March, Preliminary).

This week's decline was narrow, not broad. The S&P 500 slipped 1.2%, but markets weren't in full retreat — some areas held up. This looks more like rotation than a broad risk-off move. The dollar also strengthened +1.2% — a quiet headwind if you hold international ETFs, as foreign gains get partially erased when converted back to USD.

Bond yields climbed 13 bps to 4.13% over the week, making it harder to justify equity valuations — particularly in growth and small caps. Worth noting: gold fell 3.75% despite the equity selloff — a sign the dollar's tariff-driven strength is the dominant force, not a simple flight to safety.

Consumer Confidence came in at 91.2 — higher than expected. Everyday Americans feel relatively okay about their jobs and finances, which tends to support continued spending. The Producer Price Index — what businesses pay for their inputs — came in hotter than expected at 0.5%. When businesses pay more to make things, they eventually pass those costs on to consumers. It also signals the Fed probably won't be cutting rates anytime soon. The big non-data story this week was trade policy. Tariffs raise costs for U.S. companies that import goods — that pressure can squeeze profit margins and eventually show up as higher prices, adding uncertainty the market doesn't love.

CPI (February, YoY) is the key print next week. A hot number pressures growth stocks and pushes yields higher — TIPS and defensives benefit. A cool read revives rate-cut hopes and lifts long bonds and tech. Be positioned before the release, not after.