US sharemarkets fell on Thursday, leaving the S&P 500 close to flat for the year as investors rotated out of financial stocks and monitored rising geopolitical tensions. The Dow Jones Industrial Average lost 267 points, or 0.54%, to 49,395.16. The S&P 500 slipped 0.28% to 6,861.89, while the Nasdaq Composite fell 0.31% to 22,682.73.
With the latest move, the S&P 500 is up just 0.2% in 2026, the Dow has gained more than 2%, and the Nasdaq remains down more than 2%.
Losses were concentrated in private credit and alternative asset managers after Blue Owl Capital announced it would tighten investor liquidity following the sale of US$1.4 billion in loan assets. Blue Owl fell around 6%, while Blackstone and Apollo Global Management dropped more than 5%. The move renewed concerns about risks within the US$1.8 trillion private credit market.
Software stocks also remained under pressure, with Salesforce, Intuit and Cadence Design Systems all weaker as investors continue to reassess the impact of artificial intelligence on business models.
Oil rises as geopolitical tensions build
Investor sentiment remained cautious as crude prices extended gains amid escalating tensions between the US and Iran. Oil rose more than 4% as markets weighed the possibility of further conflict in the Middle East, adding to cross-asset volatility. Gold also edged higher, reinforcing a defensive tilt in positioning.
Walmart shares fell more than 1% after issuing a weaker-than-expected full-year outlook, overshadowing stronger fourth-quarter results.
Australian market outlook
Australian shares are set to open lower, tracking weakness on Wall Street and firmer oil prices. ASX 200 futures are down 44 points, or 0.49%, to 9,003.
Locally, investors are preparing for another heavy earnings session, with results due from ANZ, QBE Insurance, Mineral Resources, Guzman y Gomez, Megaport and Telix Pharmaceuticals, among others. Across the Tasman, New Zealand releases January trade data.
Globally, attention turns to a series of manufacturing and services PMI releases, while in the US, personal income, spending and the Core PCE inflation measure are due early Saturday AEDT, alongside fourth-quarter GDP and the University of Michigan sentiment survey.
