Mar. 6 at 8:23 PM
Financial stocks fell sharply Friday as investors reacted to a weak U.S. jobs report and surging oil prices tied to the Iran conflict. The economy lost 92,000 jobs, fueling fears of stagflation and pressuring the sector.
The KBW Nasdaq Bank Index dropped about 3.7%, while the Vanguard Financials ETF fell roughly 2.4%. Major banks and financial firms also declined, including Citigroup, Wells Fargo, Morgan Stanley, and Robinhood Markets.
Investors are increasingly worried about the outlook for Federal Reserve rates, persistent inflation, and potential stress in private credit markets. Asset managers were also hit after BlackRock restricted withdrawals from one of its private credit funds amid heavy redemption requests. Concerns about AI-driven disruption in wealth management platforms have added further pressure to financial stocks.
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