1. MARKET OVERVIEW

U.S. equities retreated this week amid escalating concerns over Trump administration's proposed tariffs on Canada, Mexico, and China, putting pressure on risk assets. The S&P 500 declined 0.5% to 5,983.25, while the NASDAQ Composite fell 1.4% to 19,524.01. Meanwhile, the Conference Board Consumer Confidence Index fell sharply by 7 points to 98.3 in February, marking the largest monthly decline since August 2021. Additionally, 12-month inflation expectations rose to 6% from 5.2%, further intensifying monetary policy uncertainty.

2. SECTOR PERFORMANCE

• Defensive Sectors OutperformHeightened market volatility triggered defensive positioning as investors rotated out of large-cap growth stocks into defensive assets. Healthcare and Consumer Staples sectors gained 0.89% and 0.68% respectively, demonstrating capital rotation trends in risk-averse environments.
• Growth Sectors Under PressureEconomic uncertainty weighed heavily on cyclical sectors, with Consumer Discretionary and Communication Services declining 4.06% and 3.67% respectively, reflecting cautious sentiment toward economically sensitive industries.

3. DEFENSIVE SECTOR OPPORTUNITIES

A. iShares Global Healthcare ETF (IXJ)

• Healthcare sector attracting defensive capital. IXJ provides global healthcare exposure, benefiting from the sector's long-term growth prospects and market risk-off rotation. Technically, the ETF has broken through an "inverse head and shoulders" neckline, establishing a clear uptrend and indicating further upside potential.

B. Consumer Staples Select Sector SPDR Fund (XLP)

• Consumer Staples continues to attract defensive capital flows. XLP recently breached key resistance levels, confirming an uptrend with significant volume expansion, indicating strong momentum support for further appreciation.

4. KEY ECONOMIC DATA NEXT WEEK

• Non-Farm Payroll Report (March 7)
  • Expected: 180,000 new jobs
  • Unemployment rate forecasted at 3.5%
• Consumer Price Index (CPI, March 12)
  • Expected: 0.2% month-over-month increase
  • 2.1% year-over-year