The S&P 500® declined in February as geopolitical tensions and growing concerns over potential disruption from artificial intelligence weighed on investor sentiment. Following a coordinated strike on Iran, energy prices surged amid fears of oil supply disruptions linked to production risks and possible blockages at the Strait of Hormuz. Higher energy costs have revived inflation concerns, potentially steepening the yield curve and pressuring long duration growth stocks. Despite elevated Middle East conflict, we remain encouraged by expectations for earnings growth across S&P 500 sectors this year, which could provide support for continued improvement in market breadth over time.