Central-bank hawkishness hit US markets

February 26, 2026 at 21:00 UTC

5 min read

S&P and Nasdaq index charts declining after central-bank hawkish signals and US jobless claims

Key Points

BOJ board member signalled gradual tightening, which markets treated as hawkish and pushed up JGB yields and the yen.
Bank of Korea held its policy rate at 2.50% and upgraded 2026 forecasts, which tempered rate-cut bets and supported the won and local yields.
Lagarde's testimony and a 3.3% y/y rise in euro-area M3 pushed back on near-term ECB easing priced into markets, which helped European indices outperform.
United Therapeutics beat Q4 EPS and guided double-digit 2026 revenue growth, which sent its shares up about 13% and moved intraday flows.

Global Market Summary

The S&P 500 (SPX) fell 0.59% and the Nasdaq Composite (^IXIC) declined 1.27% while the Dow Jones Industrial Average (DJIA) was essentially flat (+0.01%), as hawkish central-bank commentary and a modest rise in US initial jobless claims tempered risk appetite. European markets outperformed, with the CAC 40 (FRA40) up 0.72%, the FTSE 100 (UKX) up 0.37% and the DAX (DAX) up 0.45%, supported by ECB commentary and a pickup in euro-area M3 money supply. Asia finished mixed: Hong Kong's Hang Seng (HSI) slid 1.44% while Shanghai (000001.SS) was effectively flat (-0.01%) amid BOJ and Bank of Korea policy signals influencing regional flows.

Top Movers

Sectors: Financials led with XLF (1.20%) and real estate VNQ (0.79%), while technology VGT lagged (-1.58%) and consumer discretionary XLY was flat (-0.01%). Top gainers: SEZL (+37.34%), FA (+22.79%) and IONQ (+22.18%). Top losers: EOSE (-37.51%), ACMR (-16.38%) and FOUR (-15.91%).

Macro highlights

The Bank of Korea held its policy rate at 2.50% and upgraded 2026 GDP and inflation forecasts, a pause that tempered rate-cut bets and supported the won and local yields. BOJ board member Hajime Takata signalled further gradual tightening, which markets treated as hawkish and put upward pressure on JGB yields and the yen. US initial jobless claims rose modestly to 212,000—viewed as neutral to slightly hawkish for easing prospects—while ECB President Lagarde's testimony and a 3.3% y/y pickup in euro-area M3 pushed back on near-term ECB easing priced into markets.

News that moved markets

Viatris (VTRS) reported fourth-quarter and full-year 2025 results and provided explicit 2026 guidance plus a $650 million cost-savings target, disclosures that revise near-term earnings and cash-flow assumptions. United Therapeutics (UTHR) beat Q4 EPS and guided for double-digit 2026 revenue growth, sending shares up about 13%, while Photronics (PLAB) and Novavax (NVAX) also reported results that moved their stocks intraday.

Upcoming session watchlist

US PPI MoM (JAN) — consensus 0.3% vs 0.5% prior | Indicates upstream price pressures and potential pass-through to consumer inflation.
FR Inflation Rate YoY Prel (FEB) — forecast 0.2% vs 0.3% prior | Preliminary yearly inflation reading guides near-term price trend.
DE Inflation Rate YoY Prel (FEB) — vs 2.1% prior | Preliminary inflation rate indicates price pressures compared with last year.
CA GDP Growth Rate QoQ (Q4) — forecast -0.1% vs 0.6% prior | Measures quarterly economic growth momentum and domestic demand strength.
CA GDP Growth Rate Annualized (Q4) — forecast 0.0% vs 2.6% prior | Annualized growth rate signals broader activity pace and output momentum.
IN GDP Growth Rate YoY (Q4) — forecast 7.8% vs 8.2% prior | Yearly growth rate gauges economic expansion and aggregate demand.

Key Takeaways

S&P 500 fell 0.59% and Nasdaq slid 1.27% while the Dow was essentially flat, as hawkish central-bank commentary and higher jobless claims weighed on risk assets.
ECB commentary and a pickup in euro-area M3 supported European markets, which left the CAC 40, FTSE 100 and DAX higher.
Financials led (XLF +1.20%) and VNQ rose, while technology VGT lagged (-1.58%) and consumer discretionary XLY was essentially flat.
Asia ended mixed, the Hang Seng slid while Shanghai was effectively flat, as BOJ and Bank of Korea policy signals influenced regional flows.