U.S. stocks fell sharply at the end of February 2026 amid concerns over credit market stress, persistent inflation, AI-driven volatility, and escalating geopolitical tensions, with financials and tech sectors particularly hard hit. The episode also discussed major media mergers, stubborn inflation impacting Fed policy, and rising investor interest in safe-haven assets like bonds and gold.
U.S. stock markets experienced a turbulent end to February 2026, with major indices closing in the red for both the day and the month. The S&P 500 and Nasdaq saw notable declines, driven by concerns over credit stress, persistent inflation, and heightened geopolitical tensions. Financials and technology sectors, particularly software and asset managers, were among the hardest hit, with significant selloffs in major banks like Goldman Sachs and Morgan Stanley. Investors flocked to safer assets, resulting in the best monthly performance for government bonds in a year, while gold and silver ETFs also saw increased interest.
A key theme throughout the discussion was the growing anxiety around private credit markets. Multiple guests highlighted cracks emerging in the private asset space, including issues with redemptions, write-downs, and questions about underwriting standards. The analogy of “credit cockroaches” was used to describe the fear that isolated problems could signal broader systemic risks. While some experts argued that the risks remain contained, others warned that lack of transparency and the sheer size of the private credit industry could pose contagion risks reminiscent of past financial crises.
Artificial intelligence (AI) was another major focus, both as a source of market volatility and as a driver of innovation. Uncertainty about the long-term impact of AI investments, particularly among hyperscalers and software companies, contributed to sharp declines in software stocks. At the same time, companies like Generate:Biomedicines, which leverages generative AI for drug development, managed to go public despite the challenging environment, though its stock faced immediate pressure. The broader market is grappling with whether AI will deliver the expected returns or disrupt existing business models more than anticipated.
The video also covered significant developments in the media and streaming industry. Paramount Skydance’s acquisition of Warner Bros. Discovery, outmaneuvering Netflix, was confirmed, raising questions about the future of content, streaming competition, and the financial health of the newly combined entity. Analysts discussed the likelihood of further industry consolidation, the challenges of integrating large media companies, and the strategic moves by Netflix, which walked away from the deal with a substantial termination fee. The conversation highlighted the ongoing transformation of Hollywood and the streaming landscape.
Finally, the program touched on macroeconomic concerns, including stubborn inflation as reflected in the latest Producer Price Index (PPI) report, and the potential impact on Federal Reserve policy. Experts noted that rising input costs and services inflation could delay anticipated interest rate cuts, while consumer spending remains under pressure, particularly among middle- and lower-income households. The show concluded with updates on geopolitical risks, especially regarding Iran, and the potential for military escalation, which contributed to volatility in oil prices and added another layer of uncertainty for investors heading into March.