The Schwab US Dividend Equity ETF (SCHD) is doing well this year and is constantly beating the broader market, including the S&P 500 and the Nasdaq 100 indices. 

SCHD has jumped by 8.50% this year and is now hovering at its all-time high, while the S&P 500 has risen by just 1%. This article explores the main reason why the SCHD ETF is thriving this year.

SCHD ETF is thriving as rotation from AI companies continue 

The SCHD ETF is firing on all cylinders this year and is up by nearly 30% from its lowest level in April last year. 

The main reason behind the rally is the ongoing rotation from technology stocks to value names.

A closer look shows that most technological stocks have crashed and moved into either a correction or a bear market.

NVIDIA, a top player in the AI industry, has dropped by 10% from its highest level in 2025. Similarly, Microsoft stock has plummeted to $430, down by 22% from its all-time high.

Other software companies, including popular names like Palantir, ServiceNow, Intuit, and Salesforce, have all crashed.

On the other hand, investors have turned to other value companies that have underperformed the broader market in the past few months.

Soaring energy prices have boosted the SCHD stock 

The other main reason behind the ongoing SCHD stock rally is the energy sector. Data shows that the energy segment is the biggest part of the index, with companies in the industry accounting for 20% of the fund.

Energy stocks have jumped in the past few months as crude oil has soared. Brent, the global benchmark, rose to $70 as the risk that the United States will attack Iran rose. 

Data shows that the State Street Energy Select Sector ETF (XLE) jumped to a high of $51, up by 40% from its lowest level in April last year. The ETF has jumped to a record high.

Some of the top energy stocks in the SCHD ETF are Chevron, ConocoPhillips, EOG Resources, and Valero Energy.

Corporate earnings to impact its performance 

The SCHD ETF stock will have some notable catalysts this week. The most important one will be key corporate earnings, including top companies like Palantir, Walt Disney, AMD, Merck, Amgen, Pfizer, Alphabet, Eli Lilly, AbbVie, Qualcomm, Boston Scientific, ConocoPhilips, Bristol-Myers Squibb, ICE, Philip Morris, and Biogen.

These companies will publish their earnings, which will provide more information about their performance in the fourth quarter. Analysts expect the report to show that these companies continued doing well in the quarter.

The other potential catalysts for the SCHD ETF this week will be the upcoming US non-farm payrolls data, which will come out on Friday. It will also react to the decision by Donald Trump to nominate Kevin Warsh as the next Federal Reserve Chair.

SCHD ETF stock technical analysis 

The daily timeframe chart shows that the SCHD ETF stock has been in a strong uptrend in the past few months. It jumped from a low of $23.20 in April last year to the current $29.82.

The fund has remained constantly above the 50-day and 100-day Exponential Moving Averages (EMA). It also moved above the Supertrend indicator and the Ichimoku cloud.

The Average Directional Index (ADX) has jumped to 43, its highest level in over a year, and much higher than last year’s low of 9.68. A soaring ADX indicator is a sign that the momentum is growing.

Therefore, the most likely scenario is where it continues rising as bulls target the next key resistance level at $35. A drop below the key support at $28 will invalidate the bullish outlook.

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The ASX 200 Index retreated for two consecutive days, reaching a low of $8,760 from the year-to-date high of $9,000. This retreat may continue in the next few days as the Reserve Bank of Australia (RBA) prepares to buck the global trend on interest rates.

RBA set to hike interest rates 

The ASX 200 Index continued falling while bond yields rose as market participants predicted that the RBA would deliver an interest rate hike on Tuesday. Most economists see the bank hiking rates by 0.25% to 3.85%.

If this happens, it will mean that the bank has taken a divergent view than other central banks, including the Federal Reserve and the European Central Bank (ECB).

Odds of an RBA rate hike soared after the Australian Bureau of Statistics (ABS) released strong jobs and inflation numbers recently. A report released last week showed that the core and headline inflation remained above the target at 2%.

The trimmed mean inflation report rose to 3.4% in the fourth quarter, higher than the expected 3.3%. Other inflation gauges, including the weighted mean and the headline figures remained above the 2% target. The government blamed the high inflation rate to the end of energy rebates and other temporary factors.

At the same time, the labor market has continued doing well in the past few months, with the unemployment rate continuing to fall and wage growth rising.

Therefore, analysts expect the bank to hike interest rates and maintain them at 3.85% in the foreseeable future. In a note, an analyst from GSFM said:

“Inflation is a clear and present danger, and attending to that danger now by raising the policy rate is the most appropriate response. Failure to do so may well necessitate more aggressive use of the policy rate instrument down the track.”

The rising odds of an RBA rate hike explain why Australian bond yields have continued rising in the past few weeks. Data shows that the five-year yield rose close to 4.8%, and analysts expect it to hit the key 5% target in the near term.

The RBA’s rate hike means that it has deviated from other global central banks that are in an easing cycle, which explains why the Australian dollar has rebounded in the past few months.

ASX 200 Index technical analysis 

The daily timeframe chart shows that the ASX 200 Index has been in a strong uptrend in the past few weeks, moving from a low of $8,382 in November last year to a high of $9,000 this year. It has now pulled back to the current $8,755.

The index has moved below the lower side of the ascending channel. It has moved below the 50-day Exponential Moving Average (EMA).

It has also moved to the Major S&R pivot point level. Therefore, the most likely scenario is where the index continues falling, with the next key target being the key support level at $8,500. On the flip side, a move above that level at $8,900 will invalidate the bearish outlook.

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The GBP/USD exchange rate continued its strong downward trend, moving from the year-to-date high of 1.3876 to the current 1.3672 as traders wait for the upcoming Bank of England (BoE) interest rate decision and US non-farm payrolls (NFP) data. 

Bank of England interest rate decision 

The GBP/USD exchange rate retreated as investors focused on the upcoming Bank of England interest rate decision on Thursday this week.

Most economists believe that the BoE will leave interest rates unchanged at 3.75% as officials remain concerned about the elevated inflation in the country.

The most recent data showed that the UK’s consumer inflation remained much higher than the Bank of England’s target of 2.0%. Data released recently showed that the headline Consumer Price Index (CPI) dropped to 3.4% in December last year. 

While officials believe that prices will drop to 2.0% soon, officials at the Bank of England are divided on when this will happen. However, the recent crude oil price surge after Trump announced a potential attack on Iran, could push inflation higher in the near term.

More data showed that the unemployment rate remained steady at 5.1% in the three-months through November last year. Wage growth is expected to undershoot the bank’s forecast for the fourth quarter.

Meanwhile, the central bank expects that the British economy will continue slowing in the coming months because of Rachel Reeves’ tax increases. The view is that the economy grew by 1.2% this year.

US non-farm payrolls jobs numbers 

The next key catalyst for the GBP/USD exchange rate will be the upcoming US non-farm payrolls data, which will come out later this week.

Data compiled by TradingEconomics shows that the economy created 70k jobs in January, while the unemployment rate remained unchanged at 4.4%.

The data comes a day a week after the Federal Reserve left interest rates unchanged between 3.50% and 3.75%. Officials also upgraded the economic outlook, pointing to lower inflation in the coming weeks.

The GBP/USD pair will also react to the nomination of Kevin Warsh to become the next Federal Reserve Chairman. Warsh is widely seen as a highly hawkish official who has criticized the Fed for cutting interest rates and implementing quantitative easing policies.

Meanwhile, the pair will also react to the upcoming attack on Iran, which may happen as early as this week. Such an attack will lead to higher oil prices, which will lead to more volatility and high inflation.

GBP/USD technical analysis 

The daily timeframe chart shows that the GBP/USD exchange rate peaked at 1.3876 in January and has pulled back to the current 1.3670. It has moved to the Major S&R pivot point of the Murrey Math Lines tool.

The GBP to USD pair has moved below the important support level at 1.3727, its highest level in September last year. Also, the Relative Strength Index (RSI) and the MACD indicators have continued falling.

Therefore, the most likely GBP/USD forecast is bearish, with the next key target level being at 1.3500. The pair will likely resume the uptrend, potentially to the Ultimate Resistance level at 1.4160.

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Rolls-Royce share price has pulled back in the past few weeks, moving from a record high of 1.307p to the current 1,210p. It remains 1,800% above its lowest level in September 2022. This article explores some of the top catalysts for the RR stock in February 2026.

Rolls-Royce share price to react to earnings 

The main catalyst for the Rolls-Royce stock price is the upcoming full-year earnings, which will come out on February 26. 

These results will provide more color about its business last year and whether the growth trajectory accelerated.

The most recent consensus among analysts is that its full-year revenue came in at £19.5 billion, much higher than the £17.8 billion it made in the previous year. 

Additionally, analysts expect that its underlying EBIT rose to £3.26 billion, while its profit before tax (PBT) rose to £3.14 billion. 

Rolls-Royce Holdings’ growth will likely continue in the coming years, with analysts expecting its revenue to rise to £21.5 billion this year, followed by £23.3 billion and £25.3 billion in the next two consecutive years.

The company’s profitability is also expected to continue growing, with the underlying profit before tax (PBT) will move to £4.6 billion, up from £3.1 billion.

Still, on the positive side, there is a possibility that the company’s report will be much higher than expected, as it has done in the past. For one, General Electric Aerospace reported strong financial results and boosted its guidance, which is notable as their businesses are related.

Rising geopolitical tensions 

The Rolls-Royce share price will also react to the potential geopolitical events in February because it is one of the biggest players in the defense industry.

One of the main geopolitical events is the potential US attack on Iran. Such a move has a chance to lead to more demand for its military equipment, which have become more popular in the past few years. 

The company, like other defense contractors such as BAE Systems, Babcock International, and Leonardo, is benefiting from the ongoing boost in European defense spending as countries express their concerns about the United States.

Airbus earnings 

Rolls-Royce’s biggest business is its civil aviation, which provides engines to wide body aircrafts such as A350 and A330. Its engines also power some Boeing 787 planes.

Therefore, the upcoming Airbus earnings on February 19 will have some impact on its stock to some extent. Signs that Airbus continued boosting its production will be bullish for the Rolls-Royce stock.

The most recent results showed that Airbus delivered 507 aircraft in the past nine months of the year, while its revenue rose to €47.4 billion, while its EBIT moved to €3.4 billion.

Rolls-Royce share price technical analysis

RR stock chart | Source: TradingView

The daily timeframe chart shows that the Rolls-Royce stock price has pulled back in the past few weeks, moving from a high of 1,307p to the current 1,210p.

It has retested the key support level at 1,196p, its highest level in September last year. This means that it has formed a break-and-retest pattern, which is a common bullish continuation sign.

The stock has also formed a bullish flag pattern,which is made up of a vertical line and a descending channel. It has also moved above the 50-day and 100-day Exponential Moving Averages (EMA).

Therefore, the most likely scenario is where it rebounds, potentially to the year-to-date high of 1,307p. A move above that level will point to more gains, potentially to the psychological level at 1,500p. 

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The FTSE 100 and FTSE 250 Indices remained in a tight range on Monday as market participants waited for major macro events and earnings from British companies. This article explores some of the top catalysts to watch this week.

FTSE 100 and FTSE 250 indices to react to Bank of England interest rate decision

One of the main catalysts for the FTSE 100 and FTSE 250 indices will be the upcoming Bank of England (BoE) interest rate decision, which will happen on Thursday this week.

Economists polled by Reuters expect the bank to leave interest rates unchanged at 3.75% as officials remain concerned about the elevated inflation.

The most recent results showed that the headline Consumer Price Index (CPI) rose to 3.8% in December, higher than the bank’s target of 2.0%. Core inflation, which excludes the volatile food and energy prices, has also remained at an elevated level in the past few months.

Still, most officials, including Andrew Bailey, the bank’s governor, believe that inflation will continue falling in the coming months.

The BoE outlook explains why UK bond yields have remained unchanged in the past few months. Data shows that the ten-year bond yield has remained unchanged at 4.50%, while the five-year was at 4.6%.

Top UK companies to publish earnings 

The other key catalyst for the FTSE 100 and FTSE 250 indices are the upcoming earnings from some of the biggest companies in the UK.

GSK, a major pharmaceutical valued at over $103 billion, will release its results on Wednesday. 

Shell, the biggest energy company in Europe, will release it on Thursday. These numbers come as the energy market continued doing well because of the rising geopolitical tensions between the United States and Iran.

Unilever, a major player in the Fast Moving Consumer Goods Industry (FCMG), will release its numbers on Thursday.

More companies like Entain, Watches of Switzerland BT Group, Compass Group, and Vodafone will also publish their numbers.

On top of this, hundreds of American companies, including popular names like Amazon and Google, will publish their financial results. Historically, these companies often have an impact on the global financial market.

Commodity prices to impact UK stocks

The other major catalyst for the FTSE 100 and FTSE 250 indices is the performance of key commodities. Gold, copper, and silver prices tumbled on Monday, affecting key companies in the industry.

Indeed, data shows that the Fresnillo stock price crashed by 7% as silver plunged. Fresnillo is one of the biggest silver miners globally. It has been one of the best-performing companies in FTSE 100 Index in the past few months as silver jumped.

Endeavour Mining’s stock price dropped by 6.8% as gold prices dropped. Other mining companies like Antofagasta, Anglo American, Rio Tinto,and Glencore were among the top laggards in the FTSE 100 Index on Monday.

Geopolitical events to impact British stocks

The FTSE 100 and FTSE 250 indices will also react to the upcoming geopolitical developments in the Middle East.

Donald Trump has warned that he may attack Iran as soon as his armada near the region. Trump has accused the Iranian regime of killing protestors and for having nuclear ambitions. Also, Trump wants Iran to dismantle its civilian nuclear ambitions and limit its ballistic missile program.

An attack would have major implications in the US and UK equities as it would lead to higher oil prices and inflation. It would also disrupt the travel activity in the region, affecting companies like IAG and EasyJet.

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The S&P 500 Index and its ETFs, like SPY, IVV, and VOO, remained in a tight range close to the all-time high after key earnings from some of the biggest American companies last week. They also wavered after Donald Trump announced his nominee for the Federal Reserve on Friday. This article looks at some of the top catalysts for the index this week.

S&P 500 Index to react to key earnings 

The S&P 500 Index remained slightly below the all-time high after top companies like Microsoft, Apple, and Meta Platforms published their financial results last week. 

Apple reported strong earnings but warned about the memory shortage in the industry, while Microsoft’s stock dropped after the company noted that its cloud revenue growth was slowing. Meta Platforms reported strong financial results, pushing its stock to a record high.

33% of all companies in the S&P 500 Index have published their financial results, with the blended earnings growth of 11.9%. If this is the final figure, it will mark the fifth consecutive quarter of double-digit revenue growth.

This week will see more S&P 500 constituent companies publish their financial results. The most notable ones are companies like Amazon and Google.

The others are Palantir, Walt Disney, AMD, Merck, Pfizer, PayPal, Eli Lilly, Qualcomm, Uber, ConocoPhillips, and KKR. In total, over 50% of all companies in the S&P 500 Index will publish their results this week.

There will be major corporate news, including news that Bob Eiger is considering resigning before his term ends and that the deal by NVIDIA to invest in OpenAI was on ice.

Potential US strike on Iran

The other major catalyst for the S&P 500 Index will be on geopolitics. In a statement last week, Donald Trump warned Iranian leaders to talk with the United States about ending its nuclear program. This statement was notable as Trump claimed that he completely obliterated the program last year.

Most analysts believe that Trump’s goal in Iran is purely on regime change, a move that Israel has supported for years. 

Iran has threatened that any attack from the United States will attract a major retaliation, which explains why the crude oil price has jumped in the past few weeks, with the price of crude oil soaring to $70.

The country has some notable options, including disrupting trade at the Strait of Hormuz, hitting Israel, and attacking US bases in the region.

US non-farm payrolls data 

The other major catalyst for the S&P 500 Index and its ETFs will be the upcoming macro data, which will have a major impact on the financial market.

The US will publish the latest jobs numbers on Friday. Economists expect the data to show that the economy added over 70,000 jobs in January, while the unemployment rate dropped to 4.3%.

This report comes a week after the Federal Reserve delivered its interest rate decision. As was widely expected, the bank decided to leave interest rates unchanged between 3.50% and 3.75%.

Most importantly, the upcoming report comes a week after Donald Trump nominated Kevin Warsh to become the next Federal Reserve Chair. While Warsh has supported some of Trump’s deregulation efforts, he has always been an inflation hawk.

Therefore, there is a likelihood that Warsh will become more like Jerome Powell, who promised Trump of rate cuts only for him to maintain a more hawkish view.

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US natural gas prices have been on an uptrend since earlier in the week as meteorologists warn of an incoming winter storm. Indeed, most parts of the country are already experiencing lower-than-normal temperatures. In the ensuing sessions, weather predictions and inventories will influence the price movements. 

US natural gas prices retest three-year high

Natural gas price has been subject to heightened volatility as weather changes impact the demand outlook during the ongoing winter season. In the past week, the benchmark Henry Hub futures dropped to a three-month low as warmer temperatures in most parts of the US eased the heating demand. 

However, the oncoming winter storm is reversing the bearish trend that saw the US natural gas price plunge by about 45% since 5th December 2025 when it hit a three-year high. In the past two sessions, it has erased some of those losses by rallying by about 56%. 

This rebound is set to continue in the near term as the cold Arctic air masses sweep across the eastern US. According to the National Weather Service, a huge winter storm is expected to cause heavy snow and freezing rain in the Plains and southern Rockies. It will then head towards the East Coast as the weekend approaches. 

Already, most parts of the US are experiencing lower-than-normal temperatures in the current week. Subsequently, the ensuing EIA weekly natural gas storage report may further bolster prices. 

In its latest report, the agency indicated that inventories decreased by 71 Bcf for the week that ended on 9th January compared to the previous week. However, the amount in storage was 33 Bcf higher than a similar period in 2025.

Even with the recorded gains, volatility is set to remain high in the short term. With weather being a key driver of natural gas prices, signs of warmer temperatures into February may ease the recorded spike. 

US natural gas price technical analysis

Henry Hub futures have recorded gains for three consecutive sessions in reaction to the extreme weather forecast. Notably, it gas rallied by about 60% to trade at the 3-year high reached early in December 2025 at $5.50 per million British thermal units before pulling back. At the time of writing, the benchmark for US natural gas price was at $5.41.

A look at its daily chart shows that the asset has entered the overbought territory at an RSI of 71. In the near term, it is set to remain on an uptrend as more buyers seek exposure. The bullish trend has been further consolidated by the positioning of the short and medium-term EMAs. 

After forming the bearish death cross pattern earlier in the month, the indicators are on the verge of consolidating near $4.00 to allow the short-term 25-day MA cross the medium-term 50-day EMA to the upside. Nonetheless, a corrective pullback is likely. 

Based on both the fundamentals and technicals, the bulls are keen on attracting more buyers to break the current resistance at $5.50. If successful, the next target will be at a fresh 3-year high of $5.67. 

On the flip side, a healthy pullback will likely activate the crucial support level of $5.00. Even then, the bulls will be in control as the US natural gas price continues to trade above the short and medium-term EMAs.  

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Micron (MU) stock has been in a strong bull run since April 2025, when it bottomed at $62. It has soared to $415, making it one of the top gainers in the S&P 500 Index and Nasdaq 100. 

Despite this surge, the stock has more upside in 2026 as the artificial intelligence tailwinds remain. It is also seeing elevated demand for its Dynamic Random Access Memory (DRAM) and NAND memory as the global supply constraints remain. 

Micron’s stock upside is also supported by its cheap valuation metrics, bullish analyst forecasts, and its technicals. 

Micron Stock is Benefiting From Unprecedented Memory Demand

The ongoing AI spending and data center build-up have more room to run, even as concerns of the bubble bursting remain. In a recent note, Goldman Sachs analysts estimated that AI companies will spend over $525 billion this year.

Memory companies stand to benefit from this boom, which explains why firms like Micron, Sandisk, and Western Digital were the top gainers in the S&P 500 Index in 2025.

These stocks jumped because of the ongoing supply shortage in the High Bandwidth Memory industry, with supply for 2026 being sold out. 

In its recent earnings report, Sanjay Mehrotra, Micron’s CEO, noted that it had completed supply and pricing agreements for the year. He also noted that the HBM industry’s total addressable market would jump from $35 billion in 2025 to $100 billion in 2028. 

This growth is demonstrated by the company’s earnings, which have continued to beat analysts’ estimates. Its annual revenue grew from $27 billion in 2021 to $37 billion in FY’25, and analysts see it reaching $88 billion in 2027. 

Micron’s revenue growth will be accompanied by higher margins as it has higher pricing power. Indeed, in a recent note, analysts at Nomura Securities noted that Sandisk, another top memory company, could double the prices of its 3D NAND memory devices. 

The memory industry has always been characterized by booms and busts. This happened as companies boosted their supplies whenever demand rose. 

However, the complexity of the current HBM devices means that it is hard to boost supply. In Micron’s case, it will only be able to boost supply in the second half of 2027 when its Idaho fab comes online. It will be followed by the second fab in the state and the new one in New York. 

MU Stock is a Bargain in all Measures

It is always difficult to recommend a stock trading at a record high. However, a closer look at Micron’s numbers and growth prospects shows that it is a bargain. 

The most recent results showed that Micron’s revenue grew by 57% YoY to $13.6 billion. Its gross margin grew by 11 percentage points to 56.8%.

Wall Street analysts are optimistic that the company has more room to grow. The average estimate is that its second-quarter revenue will grow by 132% to $18.75 billion. Its annual revenue is expected to jump by 98% to $74 billion. Micron’s earnings per share is also expected to soar to $32.9 from the previous $8.29. 

Therefore, with such strong numbers and its market share, one would expect a premium valuation for the company. However, data shows that the company has a forward price-to-earnings (P/E) ratio of 11, much lower than other similar companies. SanDisk has a multiple of 32, while Western Digital has 23. 

Additionally, the company has a forward price-to-earnings-to-growth (PEG) ratio of 0.22, lower than the industry’s median of 1.06. 

Micron’s Rule-of-40 metric also illustrates its valuation discrepancy. It has a forward growth estimate of 98% and a net profit margin of 28%. This gives it a Rule-of-40 metric of 126%, higher than popular AI companies like NVIDIA and Palantir. 

Is Micron Stock a Good Buy?

Most Wall Street analysts are largely bullish on Micron’s shares. 25 analysts have a buy rating, while two have a hold. The average target for the stock is $333, representing a ~3.3% drop from the current level.

Micron analyst ratings | Source: TipRanks

However, some recent analysts have boosted their targets, with Mizuho’s Vijay Rakesh moving it from $290 to $390. JPMorgan’s estimate is $350, while Piper Sander and UBS’s targets are $400. The most upbeat analyst is Rosenblatt’s Kevin Cassidy, who sees it rising to $500. 

Technicals Suggest a Brief Pullback Followed by a Rebound

While Micron has strong fundamentals, technicals suggest that it will have a brief pullback followed by a rebound. The weekly chart below shows that the stock has gotten highly overbought, with the Relative Strength Index (RSI) and the Stochastic Oscillator moving to their extreme levels.

It also remains much higher than the 100-week Exponential Moving Average (EMA), which is at $138. These indicators mean that a brief pullback, potentially to $300 is possible. It will then bounce back and possibly end the year at $450.

The Bottom Line

Micron stock has been in a strong bull run, helped by the ongoing AI boom and its strong growth metrics. Its revenue and profitability growth will likely accelerate this year as the supply constraints in the memory industry remain. 

Most valuation models show that MU is a bargain, while most analyst have a buy rating on the company. These fundamentals mean that the stock has more upside to go. 

However, technicals suggest that the stock has become highly overbought, raising the possibility of a brief pullback as investors book profits. Such a pullback may form a good entry point for bulls. 

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