Shares of banks and other financial institutions were more or less flat as private-credit fears offset an ongoing rotation to lagging sectors.
Treasury yields surged in the wake of the surprisingly strong May jobs report, putting further pressure on managers of private-credit funds. Blue Owl, KKR and Ares Management all fell by 2.7% or more.
Investors ditched the artificial-intelligence companies that had led the stock market for much of the last two years on Thursday and Friday, rotating into financial and health-care sectors that were both in the red for the year to date.
The relative performance of momentum stocks versus low-volatility stocks recently reached levels comparable to those seen near the peak of the dot-com bubble in 2000, said Canaccord Genuity analyst Martin Roberge in a note to clients, as reported earlier.
Write to Rob Curran at rob.curran@dowjones.com
