Shares of banks and other financial institutions slid after a surprising contraction of the labor market stirred fears of a stagflationary economy.
There was no respite for shares of private-credit firms. BlackRock, the world's largest money manager by assets under management, limited withdrawals for the first time from one of its flagship private-credit funds, marking the latest sign of investor discomfort with the health of the debt markets.
Rivals in the popular genre of investing, which pools investor capital into direct loans to corporations, fell in sympathy. Losses in Blackstone, Blue Owl and Ares Management were particularly pronounced.
In more fallout from private lending missteps, Phoenix bank Western Alliance Bancorporation fell sharply after it filed a lawsuit against Jefferies Financial Group over a soured $126.4 million loan tied to bankrupt auto supplier First Brands Group.
Yields on the inflation-sensitive two-year Treasury saw their biggest weekly rise since April.
"The sharp recent rise in Treasury yields leads us to see some parallels to post-Liberation Day price action," said economists at brokerage BNP Paribas.
"At that point, the initial knee-jerk 'flight to quality' didn't last and turned into a self-reinforcing rise in yields. Right after Liberation Day, the Fed seemed less dovish and a narrative of overseas selling of Treasuries emerged. This was amplified by swap spread unwinds and basis trade deleveraging."
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
03-06-26 1713ET
