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US stocks fall on credit, war jitters as oil surgesFriday’s drop drove the S&P 500 to its biggest monthly loss since March. Anxiety about an artificial-intelligence bubble resurfaced as OpenAI raised $110 billion.By Bloomberg  February 28, 2026, 8:29:53 AM IST (Published)2 Min ReadWall Street traders shunned riskier corners of the market, with stocks falling on geopolitical concerns and any issues related to private credit — a key funding source for technology companies. Treasuries climbed at the end of their best month in a year. Oil jumped.

Friday’s drop drove the S&P 500 to its biggest monthly loss since March. Anxiety about an artificial-intelligence bubble resurfaced as OpenAI raised $110 billion.

Banks sank, with investors remaining jittery after the recent collapse of a UK mortgage firm. UBS Group AG strategists this week said private-credit default rates could hit as high as 15% if AI sparks an “aggressive” disruption.

Also weighing on sentiment were a hotter-than-estimated reading on producer prices and Middle East risks. Iran is conducting regular and unexplained activity at bombed uranium-enrichment sites, United Nations inspectors said.

“The most-pressing issue facing the markets is now the situation in the Middle East,” said Matt Maley at Miller Tabak. “However, the concerns surrounding the tech sector and the credit markets are not far behind.”

A BlackRock Inc. private debt fund cut its dividend, a private credit fund overseen by Apollo Global Management Inc. marked down the value of its assets while some creditors of failed UK mortgage firm Market Financial Solutions Ltd. warned there may be a £930 million ($1.3 billion) shortfall in collateral backing their loans.

Meantime, Goldman Sachs Group Inc.’s asset management arm said redemption rates and software exposure are both relatively low in one of its biggest retail-oriented private credit funds.

The S&P 500 fell 0.4%. The yield on 10-year Treasuries slid five basis points to 3.95%. Oil hovered near $67 a barrel. Gold topped $5,200.

While the latest inflation reading came in stronger than expected, Gina Bolvin says the report wasn’t a deal-breaker.

“For investors, this is a volatility moment, not a turning point,” noted the president of Bolvin Wealth Management Group. “Focus on pricing power, earnings strength, and selective opportunities as the Fed stays patient.”

Despite all the turmoil in February, the S&P 500 was less than 1% lower for the month.

“Given the tall wall of worry — AI volatility, Nvidia-driven swings, tariffs, geopolitics and stubborn inflation — you’d expect a sharper drop,” said Mark Hackett at Nationwide. “That resilience suggests this is more of a pause than a turning point, and once it clears, the path of least resistance is higher.”

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