US equity indices fell on Wednesday, mirroring a selloff in Treasuries as the war in the Persian Gulf pushed energy prices higher and deepened concerns about inflation in the US economy. The S&P 500 moved decisively into negative territory and the Dow dropped nearly 400 points, while a strong session for technology stocks helped limit losses on the Nasdaq 100 to near-flat levels.
Crude oil and refined product prices resumed their surge as rising tensions among Iran, GCC countries, and US-Israeli forces reinforced expectations that energy exports from the region will remain disrupted. The renewed spike in energy prices drove yields higher and weighed on rate- and credit-sensitive equities, despite the International Energy Agency recommending a large, coordinated release of oil reserves by member countries and a US February CPI report that contained no upside surprises.
Asset managers extended their declines amid mounting worries over the private credit sector, with shares of BlackRock, Blackstone, Apollo, and KKR each falling more than 2%. By contrast, AI-related names outperformed after Oracle rallied 8% on stronger-than-expected guidance.
