US equities fell on Thursday, trimming yesterday’s rebound on concerns that an extended conflict in Iran will negatively impact the global economy. The S&P 500 and the Nasdaq 100 were slightly lower and the Dow dropped more than 0.5%. Refined fuel prices and long-term Treasury yields resumed their upswings to reflect pro-inflationary risks, driving rate traders to position for a single rate cut this year, instead of multiple rate cuts last week. Pharmaceuticals and defensive goods were lower after having been initially more resilient to the risk-off pivot from the war earlier in the week, with Walmart and J&J dropping over 2% and weighing on the Dow’s underperformance. Meanwhile, asset managers remained under scrutiny after BlackRock slashed the value of a private loan to zero, adding to recent pessimism on private credit. It’s shares were 1% lower, while Bridgewater fell 3.5%. In turn, Broadcom gained 6% after delivering an ambitious guidance for next year.
