Public Markets 8-Hour Briefing
×Market Turmoil
US stocks suffered their worst week since April 2025 as the Iran war triggered a massive selloff across all major indices. The S&P 500 dropped 2.3% while the Nasdaq Composite fell 3.1%, marking the steepest weekly decline for tech stocks since the pandemic crash. Treasury bonds also tumbled, posting their biggest weekly loss since April as surging oil prices and weak jobs data complicated the Federal Reserve's rate-cut outlook.
Energy Crisis
Oil prices spiked above $80 per barrel as the Middle East conflict entered its second week, with Brent crude hitting seven-month highs. The International Energy Agency warned that global supplies could tighten further if the conflict escalates, while Qatar's LNG exports remained halted under force majeure declarations. US crude buyers are now scrambling to secure alternative supplies from Asia as Iranian production faces mounting disruptions.
Private Credit Concerns
BlackRock restricted withdrawals from one of its largest private credit funds after capital calls surged, highlighting growing stress in the $1.7 trillion sector. Blue Owl Capital revealed a $48 million exposure to a collapsed UK lender, while Western Alliance sued Jefferies over a $126 million loan linked to troubled private credit deals. Analysts warn that record fundraising since 2008 has loosened underwriting standards across the industry.
IPO Market Activity
Cerebras Systems tapped Morgan Stanley to lead its highly anticipated IPO as the AI chipmaker seeks to capitalize on surging demand for artificial intelligence infrastructure. Meanwhile, Braskem Idesa is in talks with creditors for financing that would fund a potential Chapter 11 bankruptcy filing in the US, highlighting the divergent fortunes in capital markets.
Banking & Regulation
The New York Stock Exchange agreed to pay $9 million to settle SEC allegations over a 2023 market outage that caused wild price swings. Bank of America is steering clients toward "hard assets, low obsolescence" stocks amid geopolitical uncertainty, while Goldman Sachs recommends a geopolitical basket of defense contractors. Regulators are also investigating the collapse of UK lender MFS, with the Bank of England scrutinizing due diligence practices at major banks.
Currency & Bond Markets
The US dollar rallied for its best week since 2024 as investors flocked to safe-haven assets amid Middle East turmoil. UK gilts sold off sharply on inflation fears from the Iran war, dampening hopes for Bank of England rate cuts. Colombia's local debt reversed course and rallied as higher oil prices boosted the country's export revenues.
Tech & AI Sector
OpenAI and Oracle ended plans to expand their flagship data center, citing cost concerns and shifting priorities. CoreWeave is building a "gigawatt-sized engine for an AI future" according to Oppenheimer, while SpaceX's surging valuation is raising doubts about private assets in ETFs. The SEC is resisting applications for 5x leveraged ETFs amid market volatility.
M&A & Corporate News
Servier agreed to buy Day One Therapeutics for $2.5 billion, expanding its oncology portfolio with a 68% premium to the target's closing price. Diana Shipping increased its offer to acquire Genco, while Saudi Arabia boosted diplomatic efforts with Iran to contain the conflict's economic fallout. Boeing is reportedly nearing a 500-aircraft deal with China ahead of President Trump's visit.
Labor Market Shock
The February jobs report delivered a massive miss, with nonfarm payrolls falling by 92,000 - the biggest decline since the pandemic. Federal Reserve officials expressed concern about the weak data, with Chicago Fed President Goolsbee calling it a "tough miss" that could delay rate cuts. White House economic director Kevin Hassett dismissed the report as an "outlier" affected by bad weather.