U.S. equity markets closed higher on Monday, February 9, 2026, extending last week’s rebound as investor confidence continued to improve. Gains were broad across regions, with strong advances in Brazil and Canada highlighting renewed global risk appetite. A softer U.S. dollar and declining volatility reinforced supportive financial conditions, even as U.S. benchmarks advanced at a more moderate pace.

Emerging Markets and Canada Lead the Advance

The strongest performance of the session came from international markets within the Americas. Brazil’s IBOVESPA surged nearly 2 percent, continuing its recent outperformance. The rally reflects renewed investor interest in emerging markets, supported by improving risk sentiment and easing currency pressures. As volatility stabilizes and the dollar weakens, capital flows into higher-beta markets have shown clear signs of recovery.

Canada also posted a strong gain, with the S&P/TSX Composite Index rising sharply. Financials, materials, and energy stocks contributed to the advance, benefiting from both improving global sentiment and supportive commodity dynamics. Canada’s performance underscores how markets with diversified sector exposure and lower dependence on high-growth technology stocks can benefit during periods of stabilization.

US Markets Advance at a Measured Pace

U.S. equity indices continued to grind higher, though gains were more restrained compared with international peers. The S&P 500 added nearly half a percent, supported by broad but moderate participation across sectors. The index’s advance reflects growing confidence that last week’s volatility spike may have been absorbed, though investors remain selective.

The Dow 30 closed marginally higher, signaling relative stability in blue-chip stocks. Industrials and defensive names helped anchor the index, even as investors refrained from aggressive positioning. The Dow’s muted move suggests that while risk appetite is improving, caution remains embedded in large-cap allocations.

Technology and Small Caps Support the Upside

Technology stocks continued to recover, with the Nasdaq rising close to 1 percent. The move builds on Friday’s rebound and suggests that recent selling pressure in growth stocks may have been overextended. As volatility declines and the dollar weakens, valuation pressure on technology shares has eased, allowing buyers to re-enter selectively.

Small-cap stocks also contributed positively. The Russell 2000 advanced, reinforcing the view that risk appetite is broadening beyond mega-cap leadership. Small caps are often seen as a barometer of domestic economic confidence, and their continued recovery signals improving sentiment toward growth and financing conditions.

Dollar Weakness Provides a Key Tailwind

One of the most supportive macro developments of the session was the sharp decline in the U.S. dollar. The U.S. Dollar Index fell notably, easing global financial conditions and supporting both equities and emerging markets. A weaker dollar tends to improve overseas earnings for U.S. multinationals and encourages capital flows into higher-risk assets.

Currency dynamics played a critical role in today’s market action, particularly in boosting emerging markets and commodity-linked economies. If dollar weakness persists, it could continue to underpin risk assets in the near term.

Volatility Continues to Ease

Market volatility edged lower, with the VIX declining again after last week’s sharp pullback. While volatility remains elevated compared with long-term averages, the continued easing suggests that investor fear is receding. Lower volatility typically supports more stable equity advances by reducing hedging demand and risk premiums.

That said, recent market swings highlight that volatility remains a key variable. Investors are likely to remain attentive to any renewed spikes that could disrupt the recovery.

Looking ahead, markets appear positioned for continued stabilization, though upside momentum may remain uneven. Key factors to watch include upcoming economic data, central bank commentary, and the sustainability of dollar weakness. Opportunities may continue to emerge in international and cyclical segments, while risks remain tied to volatility resurgence and shifting macro expectations.