Public Markets 8-Hour Briefing
×Equity Markets
Bank stocks suffered another plunge on credit and AI fears, with consumer lenders among the worst performers. The S&P 500 fell sharply as risk-off sentiment swept through markets following Block Inc.'s massive layoffs that fanned AI anxiety. US bank stocks are now on course for their biggest slide since April market ructions, as investors fret over growing strains in private credit and risk that AI could disrupt the software industry.
Fixed Income & Commodities
Treasuries had their best month in a year as geopolitical risks and AI escalation drove investors to safety. Gold capped a historic month with an 11% gain, marking its best dollar increase ever in February. Meanwhile, oil futures settled higher as traders headed into the weekend seeing heightened risk of U.S. military action against Iran. The U.S. crude production fell to near 13.7 million barrels a day in December, the lowest in six months.
Corporate Developments
SpaceX is weighing a confidential IPO filing as soon as next month, while OpenAI hit a $730 billion valuation as Amazon, NVIDIA, and SoftBank injected $110 billion in funding. Advent International is exploring a potential takeover of Senior after receiving a number of all-cash proposals, sending shares in the aerospace parts supplier jumping 20%. In Brazil, Banco Bradesco and dental insurer Odontoprev are combining their health-care assets to create a $10 billion integrated medical group.
Financial Services
Goldman Sachs has sought to reassure clients that redemption rates and software exposure are relatively low in its private credit funds, contrasting with peers hit by redemptions. However, TPG revealed a $59 million exposure to the collapsed UK lender Market Financial Solutions, while creditors warned of a £930 million shortfall in collateral backing their loans.
Currency & International Markets
The dollar is set for its first monthly gain since October amid geopolitical tensions and hawkish Federal Reserve signals. Sterling declined against the euro and dollar after a weak consumer confidence survey, while European stocks remained mixed as corporate earnings continued and inflation data stayed in focus.