Panic proves fleeting in February as stocks, bonds climb

For all the talk of a crisis at the start of the month, February ended up being the best period for global markets since July.

Stocks, bonds and commodities rose together in February for the first time in seven months, reversing January's losses in equities and raw materials. The S&P 500 Index has closed at a record for two straight days, erasing losses from January spurred by concern economic turmoil would spread from emerging markets as the Federal Reserve began reducing stimulus efforts.

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Commodities climbed the most since July as a drought in Brazil triggered rallies in coffee and sugar. Leaders of the world's major economies pledged to maintain accommodative policies even as S&P 500 companies the biggest gain in quarterly earnings since 2011.

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“Corporate America is having a little more confidence in the trajectory of the economy,” Darrell Cronk, the New York-based regional chief investment officer at Wells Fargo Private Bank, which oversees $170 billion, said. “We still like equities relative to other asset classes.”

The benchmark gauge for American equities advanced 4.3% in February to 1,859.45, reversing its 3.6% loss from the previous month. Stocks around the world slid between Jan. 15 and Feb. 4 after Argentina unexpectedly devalued the peso, Turkey doubled interest rates and manufacturing growth slowed in China,

'A MISSION'

U.S. consumer confidence improved last month and orders for durable goods fell less than forecast in January, a sign manufacturing was beginning to emerge from the harsh winter. Other reports showed that the economy grew at a slower pace in the fourth quarter than previously estimated.

“Equities appear to be on a mission to trend higher and forge through concerns of negative economic readings,” Terry Sandven, chief equity strategist at Minneapolis-based U.S. Bank Wealth Management, which oversees $115 billion, said. “Like in 2013, the markets are proving to be remarkably resilient and look to continue in 2014.”

Stocks gained last week as investors speculated the Fed may change its strategy should the economy weaken and data showed improving consumer confidence. Retailers led the advance with a