Comments based on information available as of 6:00 am CT on 2/27/2026

Growth: Strength is the Signal, Not Just Noise

The advance Q4 GDP estimate of 1.4% released last week revealed underlying strength beneath a seemingly weak headline. While government outlays weighed on overall growth following last year’s shutdown, consumer spending and private investment remain highly supportive. Continuing this theme of private sector resilience, manufacturing output grew in January, initial jobless claims remain low, and weekly average payroll growth has stayed consistently positive—steadily improving since early November. Cutting through a lot of noise, there’s substantial strength.

Inflation: Hopes and Dreams

While overall inflation in 2025 matched 2024 levels, the trajectory shifted dramatically. Unlike 2024, which started hot and cooled down, 2025 began quietly and ended on a high note. Despite this disconcerting pattern, underlying indicators suggest the worst may be behind us. Goods price inflation appears to have peaked and services sector inflation is slowly grinding lower. Reaching the 2% target this year might be a stretch goal, but it is no longer a fantasy.

Policy: Sub-6% Mortgages: A Milestone, Not a Magic Wand

It is undoubtedly a relief to see the average 30-year fixed mortgage rate slip below 6% this past week. For anyone who has felt completely boxed out of the housing market over the last three years, breaking this psychological barrier feels like a massive victory. However, there are no magic numbers in real estate or markets. Crossing the 6% threshold does not mean the floodgates of housing inventory will suddenly burst open. This welcome dip in borrowing costs simply isn’t enough to instantly offset the reality of structurally high home prices and a severe, years-long lack of supply. Buyers shouldn’t confuse a minor rate relief with a complete market reset. Patience will still be required this spring.

Looking Ahead: A Broader Base

Wall Street has been a bit of a rollercoaster recently, highlighted by Nvidia having its worst day since last spring and dragging the broader S&P 500 down with it. It’s easy to feel anxious when the tech darlings that carried the market stumble, but this week’s volatility is actually masking a much healthier underlying trend. We are witnessing a true market rotation, where opportunities are broadening out beyond a handful of mega-cap tech stocks and flowing into value stocks, small-caps, and industrial sectors. A market supported by a wide swath of companies is inherently sturdier than one propped up by just a few giants. Ultimately, while tech-heavy whiplash might dominate daily headlines, the stock market’s foundation is widening, offering increasingly diversified opportunities for investors.