Financial stocks sink amid renewed credit risk and AI disruption fears

TPG

27/02/2026 16:41

Updates

** Financial stocks set to end the week in negative territory, underperforming broader markets

** S&P 500 Financials .SPSY down 1.9%, vs. 0.5% decline in the S&P 500 .SPX

** Wells Fargo WFC.N, Goldman Sachs GS.N, and Morgan Stanley MS.N slide 5% each

** JPMorgan Chase JPM.N down 2.4%, Bank of America BAC.N falls 4.2%, and Citigroup C.N down 4.1%

** Ares Management ARES.N down 6%, KKR KKR.N slides 5.8%, Blackstone BX.N falls 2.9%, Carlyle Group CG.O down 4.2%, TPG TPG.O down 3.4%

** Analysts point towards combination of renewed credit risk and AI disruption fears dragging down financial stocks

** Adam Sarhan, chief executive of 50 Park Investments in New York, says the selloff across financials appears to reflect a mix of renewed credit risk worries, a broader rotation out of cyclical sectors, and concerns about how AI‑related disruptions could weigh on the economy

** "For banks, worries about narrowing net interest margins and potential credit losses are weighing on sentiment. Payments and private equity names are getting hit as higher borrowing costs and weaker consumer or deal activity expectations bite into growth outlooks. In short, this looks like a classic “flight to safety” day in the market" - Sarhan

(Reporting by Arasu Kannagi Basil and Medha Singh in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))