Wall Street's major indexes fell 1% on Thursday, with financial stocks taking a blow, as a surge in oil prices towards $100 a barrel rekindled inflation fears and investors kept a close watch on mounting jitters in the private credit sector. Iranian Supreme Leader Mojtaba Khamenei said the Strait of Hormuz should remain closed as a tool of pressure. Investors are also scrutinising the roughly $2 trillion private credit market following a string of credit issues that have surfaced in recent months and Swiss private equity firm Partners Group warned private credit default rates could double in the next few years. Morgan Stanley fell 4.3% after limiting redemptions at one of its private credit funds following similar actions by Blackstone and BlackRock earlier this month. JPMorgan Chase of some loans to private credit funds on Thursday.
