Stocks Fall on Credit, War Jitters as Oil Surges: Markets Wrap
(Bloomberg) — Wall Street traders shunned riskier corners of the market, with stocks falling on concerns about artificial-intelligence disruption and any troubles related to private credit — a key funding source for technology firms. Bonds and gold climbed. Oil topped $66.
The slide in equities drove the S&P 500 toward its worst month since March. Anxiety about a tech bubble resurfaced as OpenAI raised $110 billion. Banks sank, with investors remaining jittery after the recent collapse of a UK mortgage firm. UBS Group AG strategists this week said private-credit default rates could hit as high as 15% if AI sparks an “aggressive” disruption.
Also weighing on sentiment were a hotter-than-estimate reading on producer prices and geopolitical risks. Iran is conducting regular and unexplained activity at bombed uranium-enrichment sites, United Nations atomic inspectors said.
That all sparked a rush for the safety of gold and haven currencies while Treasuries headed for their best month in a year.
“The most-pressing issue facing the markets is now the situation in the Middle East,” said Matt Maley at Miller Tabak. “However, the concerns surrounding the tech sector and the credit markets are not far behind.”
Some creditors of failed UK mortgage firm Market Financial Solutions Ltd. warned there may be a £930 million ($1.3 billion) shortfall in collateral backing their loans. Goldman Sachs Group Inc.’s asset management arm said redemption rates and software exposure are both relatively low in one of its biggest retail-oriented private credit funds.
The S&P 500 fell 0.8%. The yield on 10-year Treasuries slid five basis points to 3.95%. Bitcoin sank to around $65,000.
Meantime, while the latest inflation reading came in stronger than expected, Gina Bolvin says the report wasn’t a deal-breaker.
“For investors, this is a volatility moment, not a turning point,” noted the president of Bolvin Wealth Management Group. “Focus on pricing power, earnings strength, and selective opportunities as the Fed stays patient.”
Despite all the turmoil in February, the S&P 500 is just about 1% lower for the month.
“Given the tall wall of worry — AI volatility, Nvidia-driven swings, tariffs, geopolitics and stubborn inflation — you’d expect a sharper drop,” said Mark Hackett at Nationwide. “That resilience suggests this is more of a pause than a turning point, and once it clears, the path of least resistance is higher.”
Corporate Highlights:
Dell Technologies Inc. gave an outlook for sales of its AI servers that exceeded estimates. CoreWeave Inc. reported a bigger-than-expected loss and boosted capital expenditures. Paramount Skydance Corp. clinched its deal for Warner Bros. Discovery Inc., outmaneuvering Netflix Inc. after a months-long battle. Block Inc. said it was reducing its workforce by nearly half in a bet on AI. Jack Dorsey’s firm also raised its outlook for gross profit. Sweetgreen Inc. reported a weak fourth quarter and said annual sales would fall much more than Wall Street expected. Duolingo Inc. said its drive to gain subscribers would mean slower earnings growth in the short term. What Bloomberg Strategists say…
“Stock investors are skittish enough that any signs of reviving inflation is weighing on already-fragile sentiment. But the message from Friday’s data — that producer costs indicate that companies’ retail margins are increasing — may be less threatening than feared.”
—Tatiana Darie, Macro Strategist, Markets Live. For the full analysis, click here.
Some of the main moves in markets:
Stocks
The S&P 500 fell 0.8% as of 2:26 p.m. New York time The Nasdaq 100 fell 0.7% The Dow Jones Industrial Average fell 1.3% The MSCI World Index fell 0.4% Currencies
The Bloomberg Dollar Spot Index was little changed The euro rose 0.2% to $1.1822 The British pound was little changed at $1.3479 The Japanese yen rose 0.1% to 155.91 per dollar Cryptocurrencies
Bitcoin fell 3.3% to $65,242.91 Ether fell 5.6% to $1,917.59 Bonds
The yield on 10-year Treasuries declined five basis points to 3.95% Germany’s 10-year yield declined five basis points to 2.64% Britain’s 10-year yield declined four basis points to 4.23% Commodities
West Texas Intermediate crude rose 2.6% to $66.92 a barrel Spot gold rose 1.2% to $5,248.27 an ounce ©2026 Bloomberg L.P.
