Volatility Returns as Trade Policy Uncertainty Weighs on Sentiment

Markets retreated from recent highs as headlines around tariffs and trade policy resurfaced, prompting investors to reduce risk exposure. Major indexes pulled back in an orderly fashion, with growth and technology names facing the most pressure. Defensive sectors provided relative stability, as investors rotated toward more conservative positioning amid the uncertain backdrop.

Despite the pullback, market structure remained intact, with major indexes holding above key support levels. Investors appeared to be repositioning rather than broadly de-risking, suggesting the underlying trend remained constructive. Heading into the final week of February, sentiment leaned cautious but not pessimistic.