Financial stocks tumbled as credit concerns collided with a broad market selloff, sending the S&P 500 to its lowest levels since late last year. Western Alliance Bancorp shares plunged as much as 14% after announcing a $126 million charge related to a loan tied to bankrupt auto-parts maker First Brands Group.

Blackrock Inc. shares fell around 5% after curbing withdrawals from a major private credit fund, while Blue Owl Capital Inc. dropped as much as 7% amid $48 million exposure to a collapsed UK property lender. The KBW Bank Index hit its lowest intraday level since November, reflecting mounting anxiety about lending to non-bank financial institutions.

The selloff intensified as investors processed an unexpectedly soft US employment report and oil prices topping $90 per barrel amid Iran conflict tensions. Jefferies Financial Group Inc. faces mounting scrutiny after Western Alliance filed a lawsuit over the First Brands Group loan, adding to concerns about its exposure to failed UK lender MFS. Shares are down over 35% year-to-date.