Following the move, the S&P 500 is up just 0.2% for 2026, while the Dow remains higher by over 2% for the year. The Nasdaq, however, is down more than 2% year-to-date.
Financial stocks led the decline after Blue Owl Capital said it would tighten investor liquidity following the sale of $1.4 billion in loan assets, raising concerns about potential losses in the private credit market. Shares of Blue Owl dropped about 6%, while Blackstone and Apollo Global Management each fell more than 5%.Software stocks also remained under pressure amid persistent worries about artificial intelligence disruption. Salesforce fell more than 1%, Intuit declined roughly 2%, and Cadence Design Systems dropped nearly 3%. The sector has struggled in recent weeks as investors assess how AI could reshape enterprise software demand.
Also read: Indian IT stocks nearing 2008 crash-era valuations: Wedbush’s Moshe KatriRetail added to the cautious tone, with Walmart down more than 1% after issuing a full-year earnings outlook that fell short of expectations, overshadowing better-than-expected fourth-quarter results.
Geopolitical risks also kept investors on edge. Crude oil prices extended gains as tensions between Washington and Tehran intensified over Iran’s nuclear programme. On Thursday, President Donald Trump said he would decide within the next 10 days whether to launch military strikes against Iran.
The recent pullback reflects what Antonio Rodrigues, chief investment officer at Procyon, described as a “confirmation of a change in leadership” in the market. He said investors are looking for earnings momentum beyond the largest companies, particularly in sectors such as industrials and consumer cyclicals.
In commodities and digital assets, oil continued to climb on supply concerns, while gold hovered near $5,000 an ounce. Bitcoin traded in a narrow range, following recent volatility.
Read more: Indian OMCs shares slip as crude rally past $70/b amid geopolitical tensions
US equity futures edged lower in early Friday after Thursday’s decline, suggesting cautious sentiment heading into the next session.
