After its best January in more than 30 years, the S&P 500 rose again in February, completing a full recovery from its 16% December drawdown. Bolstered by dovish Fed comments and rising prospects for a U.S./China deal, S&P volatility edged sharply lower for the second month in a row. Stocks were supported by a continuation of January’s solid earnings reports, with 70% of companies reporting in February beating estimates by an average of 10%. Managed risk benchmarks increased their equity exposure again in February.