Daily Market Report – March 6, 2026

On Friday, March 6, 2026, the development of oil prices, the US labor market report, and concerns about the Private Credit industry dominated market activity. The passage through the Strait of Hormuz, through which around 20 percent of the world's consumed oil is normally transported, has nearly come to a standstill. Brent (BRN1!) and WTI (CL1!) rose today by 8% and 12%, respectively. With each passing day that tankers are diverted, ports are stalled, and producers reduce oil production due to limited storage capacity, concerns about further rising oil prices and stagflation are growing.

The latest US Labor Market Report (https://www.bls.gov/news.release/archives/empsit_03062026.htm) has further unsettled financial markets as it sends surprisingly clear signals of weakness. In February, 92,000 jobs were lost, while economists had expected an increase of about 60,000 jobs; in January, 130,000 jobs had been created. At the same time, the unemployment rate rose to 4.4% from 4.3%, and previous months were revised down by a total of 69,000 jobs. This creates a delicate situation for investors: the labor market, previously a central stability anchor of the US economy, is showing the first cracks – while wages continue to rise by 3.8% year-on-year, which could limit the central bank's room for maneuver.

The S&P 500 SPX and the Nasdaq Composite IXIC fell by more than 1.5% in New York trading. Micron MU, Lam Research LRCX, Applied Materials AMAT, and Intel INTC were all down by more than 5%. There was also a significant setback for KLA KLAC (intraday down nearly -6%). The sharply rising oil prices could lead to higher inflation and fewer interest rate cuts. The uncertainty regarding interest rates particularly affects highly valued semiconductor and technology stocks.

Also notable was the financial side: BlackRock BLK fell intraday by over -7% after the asset manager limited payouts at its Private Credit vehicle HPS Corporate Lending Fund (HLEND) due to high redemption requests. Concerns about the Private Credit industry are weighing on the markets. The problem: Private Credit funds, which lend directly to companies, are facing high redemption requests from investors who have recently invested large sums in illiquid Private Credit funds. The liquidity mismatch – illiquid loans versus investors wanting their money back – can lead to significant disruptions in the financial markets.