Blackstone Inc. is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. The firm typically invests in early-stage companies. It also provide capital markets services. The real estate segment specializes in opportunistic, core+ investments as well as debt investment opportunities collateralized by commercial real estate, and stabilized income-oriented commercial real estate across North America, Europe and Asia. The firm's corporate private equity business pursues transactions throughout the world across a variety of transaction types, including large buyouts,special situations, distressed mortgage loans, mid-cap buyouts, buy and build platforms, which involves multiple acquisitions behind a single management team and platform, and growth equity/development projects involving significant majority stakes in portfolio companies and minority investments in operating companies, shipping, real estate, corporate or consumer loans, and alternative energy greenfield development projects in energy and power, property, dislocated markets, shipping opportunities, financial institution breakups, re-insurance, and improving freight mobility, financial services, healthcare, life sciences, infrastructure, enterprise tech and consumer, as well as consumer technologies. The firm considers investment in Asia and Latin America. It seeks to invest between $0.25 million and $900 million per transaction. It invests in companies with enterprise value between $500 million and $5000 million. It has a three year investment period. Its hedge fund business manages a broad range of commingled and customized fund solutions and its credit business focuses on loans, and securities of non-investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity. Blackstone Inc. was founded in 1985 and is headquartered in New York, New York with additional offices across Asia, Europe, North America and Central America.

Blackstone выглядит качественным, но дорогим активом: операционная рентабельность и доходность капитала остаются высокими, однако рынок уже закладывает это в цену. P/E, P/S, P/B и P/FCF заметно выше медианы отрасли, что указывает на премию к оценке и ограничивает потенциал дальнейшего апсайда без ускорения роста прибыли. При этом динамика мультипликаторов в целом не ухудшается драматично, но и не даёт убедительного сигнала о недооценённости: P/E и P/B остаются на повышенных уровнях, а P/FCF всё ещё выглядит дорогим. Сильная сторона компании — устойчиво высокая ROE, ROA и ROI, а также очень сильная операционная маржа, что подтверждает эффективность бизнеса и способность генерировать прибыль на базе капитала. Чистая маржа также выше отраслевой медианы и держится стабильно, что говорит о хорошем контроле расходов и качестве доходов. С другой стороны, ликвидность слабая: quick ratio равен нулю, а current ratio ниже медианы, что типично для финансовой модели Blackstone, но всё же повышает чувствительность к рыночным стрессам. Долговая нагрузка умеренная, однако debt/equity выше отраслевой медианы, а долгосрочный долг остаётся значимым, поэтому баланс нельзя назвать консервативным. Выручка и прибыль по годам в целом растут, а активы и собственный капитал увеличиваются, что поддерживает фундаментальную устойчивость. Дивидендная доходность улучшилась, что добавляет привлекательности для инвестора, ориентированного на денежный поток, но сама по себе она не компенсирует высокую оценку. В сумме фундаментал скорее поддерживает премиальную оценку, чем оправдывает её расширение, поэтому для целевой цены уместна умеренная отрицательная корректировка. Для инвестора это история сильного качества с ограниченным запасом переоценки: бизнес остаётся устойчивым, но текущая цена уже отражает большую часть позитивных факторов.

Blackstone Inc.

Сильный индекс, без изменений. Быки в растерянности.

Strong index, flat. The bulls are confused.

Сильный индекс, значительно упал. Медведи в растерянности.

Strong index, significantly down. The bears are confused.

Сильный индекс, незначительно вырос. Рынок на стороне быков.

Strong index, slightly up. The market is on the bulls' side.

Сильный индекс, незначительно упал. Рынок не поддерживает медведей.

Strong index, slightly down. The market does not support the bears.

Средний индекс, значительно вырос. Увеличился приток средств в лонги.

Medium index, significantly up. The inflow of funds into longs has increased.

Средний индекс, значительно упал. Увеличился отток средств из шортов.

Medium index, significantly down. The outflow of funds from shorts has increased.

Сильная рентабельность и рост прибыли поддерживают BX, но высокая оценка по P/E, P/B, P/S и P/FCF ограничивает потенциал переоценки.

Key Points
Bloom Energy's first-quarter revenue soared 130% year over year.
GE Vernova's gas turbine backlog and slot reservations reached 100 gigawatts last quarter.
Vistra has signed long-term nuclear power agreements with Amazon and Meta Platforms.
The numbers behind the artificial intelligence (AI) build-out keep getting bigger. On Tuesday, chip designer Broadcom announced a financing platform with investment giants Apollo Global Management and Blackstone designed to enable more than 20 gigawatts of AI compute capacity through 2028, launching with an initial $35 billion tranche.
Even automakers want in. General Motors said this week it is developing a sodium-ion battery (a chemistry built on abundant sodium rather than scarcer lithium) aimed at energy storage for data centers and the grid.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
All of this demand is landing on an electric grid that can take years to expand. Securing a grid connection for a large data center campus can be a multiyear wait, and the equipment needed to build new power plants is in short supply. That mismatch is where Bloom Energy (NYSE: BE), GE Vernova (NYSE: GEV), and Vistra (NYSE: VST) come in.
Here's a closer look at how each company is positioned to power the build-out.
1. Bloom Energy
Bloom makes solid oxide fuel cells -- systems that generate electricity on-site from natural gas without combustion -- letting data centers skip the wait for a grid hookup. Bloom's first-quarter revenue soared 130% year over year to $751.1 million, driven by a 208% jump in product revenue. The company also posted net income of $70.7 million, reversing a year-ago loss. And management raised its full-year outlook, now expecting 2026 revenue of $3.4 billion to $3.8 billion -- about 80% growth at the midpoint, up from prior guidance of about 60%.
In April, Oracle said Bloom fuel cells will fully power Project Jupiter, its AI data center campus in New Mexico, with up to 2.45 gigawatts of capacity, replacing the gas turbines and diesel generators originally planned for the site. Notably, management said more than half of Bloom's data center backlog comes from customers other than Oracle.
"Bloom is rapidly becoming the standard and go-to choice for on-site power," said Bloom founder and CEO KR Sridhar during the company's first-quarter earnings call.
2. GE Vernova
While Bloom helps data centers bypass the grid, GE Vernova supplies the grid itself -- along with the gas turbines utilities are waiting in line to order. The power equipment maker's first-quarter orders surged 71% on an organic basis to $18.3 billion, pushing its total backlog to $163 billion. Its gas turbine backlog and slot reservation agreements grew from 83 gigawatts to 100 gigawatts in a single quarter, and management now expects to reach at least 110 gigawatts by the end of 2026.
GE Vernova's electrification segment, which makes grid equipment like transformers and switchgear, booked $2.4 billion of equipment orders to support data centers during the first quarter -- more than in all of 2025. Further, the company's free cash flow more than quadrupled year over year to $4.8 billion, and management raised its 2026 guidance.
3. Vistra
Vistra is one of the largest competitive power producers in the U.S., with a generation fleet spanning natural gas and nuclear. And AI's biggest spenders are locking up that fleet years in advance. Last year, the company signed a 20-year power purchase agreement with Amazon's cloud unit for up to 1,200 megawatts of nuclear power from its Comanche Peak plant in Texas. It also signed 20-year agreements to supply Meta Platforms with 2,609 megawatts of nuclear energy and capacity from its plants in the eastern U.S.
The company is adding natural gas capacity, too, with its pending acquisition of about 5,500 megawatts of generation from Cogentrix, targeted to close in the second half of this year. Last month, Vistra reported first-quarter ongoing operations adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of about $1.5 billion and reaffirmed its full-year forecast of $6.8 billion to $7.6 billion.
What could trip up the power trade
Of course, these stocks face risks. Project timing, for instance, is one. In fact, Bloom Energy shares fell this week after a partner reportedly paused work on a data center site in Wyoming. Additionally, these companies operate in highly regulated markets.
The bigger risk may be the demand side itself. All three stocks have rallied on the assumption that AI capital expenditures keep climbing, and AI infrastructure stocks have pulled back recently on concerns about the pace of that spending. If the build-out decelerates meaningfully, backlogs could stop growing and these valuations could compress quickly.
Still, the demand signals keep arriving week after week, and from new directions -- financiers one day, automakers the next. For investors who believe the electricity bottleneck is real and durable, these three companies arguably offer a more grounded way to invest in the AI boom than chasing the chipmakers themselves.
Should you buy stock in Bloom Energy right now?
Before you buy stock in Bloom Energy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bloom Energy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $438,283!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,257,427!*
Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 12, 2026.
Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Blackstone, Bloom Energy, Broadcom, GE Vernova, Meta Platforms, and Oracle. The Motley Fool recommends General Motors and Vistra. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The AI Boom's Next Bottleneck Is Electricity. These 3 Stocks Are Positioned to Power the Build-Out.

Key Points
Ares Capital is a large business development company that invests in the same types of assets as private credit businesses.
Private credit businesses have been limiting customer withdrawals amid growing concerns about their investments.
The main reason most investors own Ares Capital (NASDAQ: ARCC) is its massive 10% dividend yield. For reference, the S&P 500 index (SNPINDEX: ^GSPC) has a yield of just 1.1%. Before you buy this business development company (BDC), however, you need to step back and make sure you understand just how risky the dividend is.
The ugly truth about Ares Capital's dividend
If you are looking for a stock with a stable or even slowly growing dividend, you will be highly disappointed with Ares Capital. The dividend history here is very clear: Ares Capital's dividend rises and falls over time. There is zero reason to expect that to change in the future, with the stock generally following the dividend higher and lower. It all relates back to the company's core business model.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
As a business development company, Ares Capital makes loans to smaller businesses that lack access to cheaper capital. In the first quarter of 2026, the average interest rate on its loans was a massive 10.3%. That's how it supports such a huge dividend, but there are negatives to consider here.
For example, interest rate changes will impact the rates it can charge. In fact, many of its loans carry variable rates, so they will adjust higher and lower fairly quickly. That increases dividend risk in a falling-rate environment. Ares Capital benefits when rates rise, but there's a risk here, too. Smaller companies may have difficulty covering rising interest costs. And if there is a recession, well, financial stress could easily lead to payment troubles among Ares Capital's customers. In fact, the dividend was trimmed during each of the last two economic downturns.
There is a canary in this coal mine
Ares Capital is basically a public business that invests in private credit. It is designed to pass income on to shareholders, so the dividend will likely be sizable all of the time. However, it will be variable, rising and falling along with the business environment. If you need the income from your portfolio to cover living expenses, it probably won't be a good fit. But if you can accept some dividend volatility, it is a well-respected BDC.
Understanding this nuance is very important right now. The business news is filled with stories about private credit funds limiting withdrawals, including Blackstone (NYSE: BX), which is doing so for its flagship fund. That's not an indication the sky is falling, noting that Ares Capital's non-accrual loans stood at a reasonable 2.1% of its portfolio at the end of the first quarter. There's really no reason to believe the dividend is at risk right now.
However, the uptick in withdrawal requests from private credit funds indicates that investors are worried about smaller, often higher-risk businesses with high-interest rate loans. Investors usually try to get ahead of potential losses from defaults by withdrawing assets before the problem becomes widespread. Limiting withdrawals allows private credit funds to control the impact and limit the need to sell assets in a rush. While that's not a dynamic that impacts Ares Capital, since the only option for investors is to sell the stock, you shouldn't ignore the withdrawal limits being imposed by private credit funds. This could be a leading indicator of dividend risk at Ares Capital.
Ares Capital isn't a bad investment if you understand it
If there is a recession, which some on Wall Street fear could be in the cards, the types of companies that Ares lends to could find it harder to cover their interest costs. Trimming its dividend is how Ares Capital handles such situations. It will keep paying a dividend, but just at a lower rate for a while until business conditions improve. The negative headlines about private credit markets are a sign that dividend investors should prepare for a possible dividend cut, even if one doesn't happen this time around, because history shows that the dividend will eventually be cut.
Should you buy stock in Ares Capital right now?
Before you buy stock in Ares Capital, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ares Capital wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $445,672!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,280,566!*
Now, it’s worth noting Stock Advisor’s total average return is 948% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 10, 2026.
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ares Capital and Blackstone. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Private Credit Keeps Making Headlines. Is Ares Capital's Big Dividend Still Safe?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Russell 1000 Growth ETF (Symbol: VONG) where we have detected an approximate $577.9 million dollar inflow -- that's a 1.3% increase week over week in outstanding units (from 345,306,844 to 349,731,844). Among the largest underlying components of VONG, in trading today Booking Holdings Inc (Symbol: BKNG) is up about 0.4%, Trane Technologies plc (Symbol: TT) is off about 0.8%, and Blackstone Inc (Symbol: BX) is lower by about 2.7%. For a complete list of holdings, visit the VONG Holdings page » The chart below shows the one year price performance of VONG, versus its 200 day moving average:
Looking at the chart above, VONG's low point in its 52 week range is $103.385 per share, with $132.94 as the 52 week high point — that compares with a last trade of $128.78. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further VONG Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

VONG, BKNG, TT, BX: ETF Inflow Alert

The S&P 500 Index ($SPX) (SPY) on Thursday closed up +0.41%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +1.73%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.53%. June E-mini S&P futures (ESM26) rose +0.36%, and June E-mini Nasdaq futures (NQM26) fell -0.47%.
Stock indexes settled mixed on Thursday, with the Dow Jones industrials posting a new all-time high. The overall market shook off early weakness on Thursday and pushed higher as a -3% plunge in crude oil prices knocked T-note yields lower, with the 10-year T-note yield falling -2 bp to 4.47%. Also, the rally in bank stocks and managed healthcare companies lifted the broader market, pushing the Dow Jones Industrial Average to a new record high.
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The weakness in technology stocks on Thursday weighed on the broader market, keeping the Nasdaq 100 in negative territory. Broadcom fell more than -12% to lead chipmakers lower after its forecast for artificial-intelligence revenue in the current quarter fell short of expectations. Also, CrowdStrike Holdings closed down more than -3% to lead cybersecurity stocks lower, despite reporting better-than-expected Q1 earnings, as the report wasn’t strong enough to lift the stock, which has more than doubled from a March low.
Weaker crude oil prices are a positive factor for stocks and bonds, as WTI crude oil fell more than -3% on Thursday after the US late Wednesday said Israel and Lebanon agreed to a ceasefire if Hezbollah also stops fighting and withdraws militants from areas near the border with Israel. Iran insists a peace deal with the US requires a ceasefire in Lebanon. The agreement would require the Lebanese army to take over after the withdrawal of Israeli troops. However, Hezbollah militants said they refused to abide by the conditions of the ceasefire announced by the US State Department, and clashes continued in southern Lebanon. Iranian Foreign Minister Abbas Araghchi said that “Communications between Iran and the US have not been cut off, but no tangible progress has been achieved in the negotiating process.”
Thursday’s US economic news was mixed for stocks after weekly jobless claims rose more than expected to a 3.75-month high and Q1 nonfarm productivity was revised lower. Conversely, Q1 unit labor costs were unexpectedly revised lower, easing concerns over wage pressures.
US weekly initial unemployment claims rose +13,000 to a 3.75-month high of 225,000, showing a weaker labor market than expectations of 215,000.
US Q1 nonfarm productivity was revised downward to 0.3% from the previously reported 0.8%, weaker than expectations of 0.4%. Q1 unit labor costs were unexpectedly revised downward to 1.8% from 2.3%, weaker than expectations of an upward revision to 2.4%.
The markets are discounting a 2% chance of a +25 bp rate hike at the next FOMC meeting on June 16-17.
The generally favorable Q1 earnings season is winding down. As of Thursday, 83% of the 494 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
Overseas stock markets settled mixed on Thursday. The Euro Stoxx 50 closed up +0.82%. China's Shanghai Composite closed down -0.64%. Japan's Nikkei Stock Average closed down -1.36%.
Interest Rates
September 10-year T-notes (ZNU6) on Thursday closed up +4.5 ticks, and the 10-year T-note yield fell -2.4 bp to 4.471%. T-note prices moved higher on Thursday, supported by a -3% decline in WTI crude oil prices, which has lowered inflation expectations. The 10-year breakeven inflation rate fell to a 6-week low of 2.365% on Thursday. Fed-friendly US economic news was also positive for T-notes, following weekly jobless claims that rose more than expected and Q1 unit labor costs that were unexpectedly revised lower. T-notes fell back from their best level as stocks rebounded, dampening safe-haven demand for government debt securities.
European government bond yields moved lower on Thursday. The 10-year German Bund yield fell from a 1.5-week high of 3.043% and finished down -1.3 bp to 3.023%. The 10-year UK gilt yield fell -3.3 bp to 4.898%.
Eurozone Apr retail sales fell -0.4% m/m, weaker than expectations of -0.3% m/m.
Swaps are discounting a 98% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.
US Stock Movers
Humana (HUM) closed up more than +6% to lead managed healthcare stocks higher and gainers in the S&P 500 after Morgan Stanley raised its price target on the stock to $240 from $217. Also, Centene (CNC) closed up more than +5%, and UnitedHealth Group (UNH) closed up more than +5% to lead gainers in the Dow Jones Industrials after Bank of America Global Research upgraded the stock to buy from neutral with a price target of $450. In addition, Elevance Health (ELV) and Molina Healthcare(MOH) closed up more than +4%, and Cigna Group (CI) and CVS Health (CVS) closed up more than +3%. Finally, Cardinal Health (CAH) closed up more than +2%.
Asset managers and bank stocks rallied on Thursday, lifting the broader market. Blackstone (BX) closed up more than +7% to lead gainers in the S&P 500, and Franklin Resources (BEN) closed up more than +5%. Also, Goldman Sachs (GS), Fifth Third Bank (FITB), and US Bancorp (USB) closed up more than +4%. In addition, JPMorgan Chase (JPM), Morgan Stanley (MS), Citigroup (C), Wells Fargo (WFC), Citizens Financial Group (CFG), M&T Bank (MTB), and BlackRock (BLK) closed up more than +3%.
Chipmakers and AI-infrastructure stocks retreated on Thursday, led by a -12% plunge in Broadcom (AVGO), the largest decliner in the Nasdaq 100, after giving an outlook that was seen as underwhelming, given the industry’s AI-related demand. Also, Micron Technology (MU) closed down more than -7%, and ARM Holdings Plc (ARM) closed down more than -4%. In addition, Advanced Micro Devices (AMD), Qualcomm (QCOM), Sandisk (SNDK), and Western Digital (WDC) closed down more than -3%, and Lam Research (LRCX) and Analog Devices (ADI) closed down more than -2%.
Medtronic Plc (MDT) closed up more than +5% after BTIG LLC upgraded the stock to buy from neutral with a price target of $90.
RTX Corp (RTX) closed up +4% after Jeffries upgraded the stock to buy from hold with a price target of $220.
Alnylam Pharmaceuticals (ALNY) closed up more than +3% to lead gainers in the Nasdaq 100 after entering into a strategic AI collaboration with Inceptive Nucleics valued at up to $2 billion to accelerate the discovery and design of RNAi therapeutics.
Brown-Forman (BF.B) closed up more than +2% after reporting Q4 gross margin of 62.6%, stronger than the consensus of 57.5%.
Zoetis (ZTS) closed up more than +2% after KeyBanc Capital Markets said the cattle screwworm parasite could be a potential catalyst for the company’s livestock portfolios, as it has approved medications to prevent and treat the parasite in livestock.
PVH Corp (PVH) closed down more than -20% after forecasting 2027 adjusted EPS of $11.80 to $12.10, weaker than the consensus of $12.24.
Ciena Corp (CIEN) closed down more than -13% to lead losers in the S&P 500 despite reporting better-than-expected Q2 earnings, as Bloomberg Intelligence said the company’s full-year sales outlook may be viewed as underwhelming amid heightened expectations.
Five Below (FIVE) closed down more than -13% despite reporting stronger-than-expected Q1 earnings results, as Jeffries said the company’s growth rate might be peaking.
CrowdStrike Holdings (CRWD) closed down more than -3% after its Q1 earnings beat wasn’t strong enough to lift the stock, which has more than doubled from a March low.
AT&T (T) closed down more than -3% and Verizon Communications (VZ) closed down more than -3% to lead losers in the Dow Jones Industrials after the US Supreme Court ruled that telecommunications companies can’t immediately demand a jury trial when hit with a Federal Communications Commission fine.
Earnings Reports(6/5/2026)
ABM Industries Inc (ABM), G-III Apparel Group Ltd (GIII), Lifezone Metals Ltd (LZM).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Rebound on Strength in Banks and Managed Healthcare

Key Points
Private credit investors have increasingly asked to withdraw funds over concerns about what they are invested in.
Many private credit funds have exposure to software companies, which are struggling now due to concerns about artificial intelligence.
Most private credit funds cap quarterly redemptions at 5%.
Concerns around private credit don’t seem to be going away.
One quarter after investors in Blackstone’s (NYSE:BX) flagship, $79 billion private credit fund, referred to as BCRED, requested redemptions totaling about 8% of shares, investors are now requesting redemptions totaling 10%.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
While some funds like Blackstone met all redemption requests in the first quarter, they are now not planning to be so lenient and will actually put up a wall to stop them.
Image source: Getty Images.
How does private credit work?
Private credit is a complex industry that is also less regulated than the traditional banking space. Most banks are regulated by three different regulators.
Private credit has grown as banks have done less lending over the years.
Essentially, private credit is when a non-bank entity makes a loan. Private credit is a broad term, and there are many different types.
For instance, private credit encompasses warehouse loans made to non-bank mortgage lenders and asset-backed loans that are collateralized by a pool of consumer loans.
Private credit also includes direct lending to companies, where most of the current concern lies.
Private credit funds have been attractive to investors because annual distributions can be in the double-digit percentile. Private credit funds may also offer greater protection than equity because they can secure a senior position in the capital stack.
Opening private credit to retail
Funds like BCRED were launched in 2021 as perpetual, non-traded business development companies (BDCs) specifically to open exposure to a wider pool of investors, including retail investors.
Perpetual non-traded BDCs do not trade on the public markets, but there is no closing date, so they can continually raise capital.
Institutional investors in BCRED still have to invest at least $1 million, while retail investors need only invest $2,500.
Interestingly, retail investors also did not have to meet the U.S. Securities and Exchange Commission’s definition of accredited investor.
Qualifying retail investors had to have either a net worth of $250,000 or a gross annual income of $70,000 as well as a net worth of $70,000.
Most funds like BCRED capped quarterly redemptions at 5%. The goal is to prevent too many investors from withdrawing their funds, so there are no liquidity concerns and the fund can focus on long-term returns.
However, it’s unclear how many retail investors fully understood this aspect when they invested.
Why investors are so concerned right now
The main concern about private credit has been direct lending, primarily because private credit issued many loans to software companies, which are now facing pressure.
There have also been reports of rising private credit defaults across the sector, although remember it’s a broad sector.
Software stocks have struggled amid investor concerns that artificial intelligence could quickly replicate software products, eroding existing software moats.
This could lead to margin contraction.
According to AltsWire, a news publication focusing on the illiquid and semi-liquid alternative investment industry, 26% of BCRED’s fund had software exposure at the end of 2025.
In a first-quarter update provided on April 29, BCRED stated that its software investments are “focused on large, established market leaders in verticals we believe are more insulated from AI-related disruption.”
The fund’s software investments have an average enterprise value of over $4.5 billion. They were also underwritten at a very conservative average loan-to-value ratio of 37%, meaning the borrower has significant equity in the deal.
Following the big sell-off in software earlier this year, BCRED said the loan portfolio remains two times covered by enterprise value.
“BCRED remains well capitalized, and repayments [from loans] and inflows have outpaced shares repurchased,” the fund said Thursday, according to The Wall Street Journal.
So BCRED seems able to weather the storm, but investors should be cautious about investing in this volatile asset class, as there are many unknowns.
At the very least, they should make sure they understand how the funds work and the quarterly caps on redemption requests.
Should you buy stock in Blackstone right now?
Before you buy stock in Blackstone, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Blackstone wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,632!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,316,532!*
Now, it’s worth noting Stock Advisor’s total average return is 960% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 4, 2026.
Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Blackstone. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Wealthy Investors Are Fleeing Private Credit — and Blackstone Just Had to Put Up a Wall to Stop Them

The global private credit market, long praised for delivering attractive yields in a low-interest-rate environment, is facing a significant stress test as rising investor withdrawal requests expose a fundamental challenge: the mismatch between illiquid assets and periodic liquidity promises.
The concerns intensified after a Seeking Alpha report published on MSN revealed that Cliffwater’s Corporate Lending Fund, which manages approximately $31 billion in assets, received second-quarter redemption requests totaling about 17% of outstanding shares. Under its standard quarterly liquidity program, the fund repurchased only 5% of shares, leaving a substantial portion of investors unable to fully withdraw their capital. The surge in redemption requests, up from roughly 14% in the first quarter, underscores growing caution among investors toward private-credit vehicles.
The news weighed on shares of major alternative asset managers, including KKR & Co. KKR, Blackstone, Inc. BX, Blue Owl Capital OWL, Apollo Global Management APO and BlackRock BLK. Yesterday, KKR shares fell 4.2%, Blackstone declined 4%, Apollo Global fell 3.4%, and Blue Owl and BlackRock plunged 3.8% and 2.8%, respectively.
Private Credit: Redemption Wave and Rising Investor Anxiety
Private credit expanded rapidly in recent years as investors sought higher yields and asset managers pushed products beyond traditional institutional buyers into the wealth-management channel. However, the industry-wide wave of withdrawals stems from lingering market unease over loan quality, as well as investor fears surrounding exposure to software and middle-market companies vulnerable to artificial intelligence disruptions.
While many private-credit funds offer periodic redemption windows to enhance accessibility, their portfolios consist largely of privately negotiated loans that cannot be readily sold without potential discounts. As a result, elevated withdrawal requests are highlighting liquidity constraints that have remained largely untested during the industry's growth phase.
The pressure is not limited to Cliffwater. Earlier this year, BlackRock restricted withdrawals from a flagship private-credit fund after redemption requests surged, while Blackstone increased its redemption cap from 5% to 7% in response to rising investor demand for liquidity. These steps have intensified scrutiny of semi-liquid private-market vehicles and raised questions about whether such structures are suitable for investors seeking regular access to capital.
The recent surge in redemption requests has put the private-credit industry under increased scrutiny, forcing leading alternative asset managers, including BLK, BX, APO, OWL and KKR, to navigate a more cautious investor environment. The trend has reignited concerns about whether direct-lending vehicles are well-suited for investors who expect periodic liquidity despite the illiquid nature of the underlying assets.
Going forward, a key question will be whether redemption activity moderates or spreads more broadly across the sector. Sustained outflows could compel asset managers to maintain larger cash reserves, slow the pace of new lending, or rethink fund structures to better align liquidity terms with portfolio holdings. Such adjustments could weigh on returns and temper growth in a market that has emerged as a major profit driver for Wall Street.
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The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Alternative Managers Shares Slip as Cliffwater Redemption Fears Mount

The S&P 500 Index ($SPX) (SPY) on Wednesday closed down -0.74%, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -1.21%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.29%. June E-mini S&P futures (ESM26) fell -0.78%, and June E-mini Nasdaq futures (NQM26) fell -0.32%.
Stock indexes retreated on Wednesday, with the Nasdaq 100 falling from a new record high. The broader market was under pressure on Wednesday as the US and Iran clashed overnight, sending WTI crude oil prices up more than +2% to a 1.5-week high and putting peace plans in doubt. In addition, weakness in software companies, cybersecurity, and private credit stocks on Wednesday weighed on the overall market.
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Crude oil price jumped more than +2% on Wednesday after US forces intercepted Iranian ballistic missiles and drones aimed at neighboring Gulf states, escalating tensions and reducing chances that the Strait of Hormuz will open any time soon. The Tasnim news agency reported that Iranian Foreign Minister Abbas Araghchi said that “Communications between Iran and the US have not been cut off, but no tangible progress has been achieved in the negotiating process.”
On the positive side, AI-infrastructure spending continues to support technology stocks. Marvell Technology rose more than +3% on Wednesday, adding to Tuesday’s 32% surge, to lead chipmakers higher after Nvidia CEO Huang predicted the company would be the next to hit a $1 trillion valuation, more than five times its current market capitalization.
Signs of strength in the US economy are also supportive of stocks after Wednesday’s reports showed the May ADP employment change, the May ISM services index, and Apr factory orders rose more than expected.
The US May ADP employment change rose 122,000, slightly stronger than expectations of 120,000 and the biggest increase in 16 months.
The US May ISM services index rose +0.9 to 54.5, stronger than expectations of 53.8. The May ISM services prices paid sub-index rose +0.6 to a 3.75-year high of 71.3, although below expectations of 72.3.
US Apr factory orders rose +4.8% m/m, stronger than expectations of +4.6% m/m and the largest increase in 11 months.
US MBA mortgage applications fell -2.5% in the week ended May 29, with the purchase mortgage sub-index down -2.9% and the refinancing mortgage sub-index down -2.3%. The average 30-year fixed rate mortgage fell -8 bp to 6.57% from 6.65% in the prior week.
The Fed Beige Book was hawkish, stating slight to moderate economic growth across most Fed districts through May 27, with employment little changed and most of the 12 Fed districts reporting higher inflation than in the previous report.
New York Fed President John Williams said, "Monetary policy is exactly in the right place. I don't see any need to raise or lower interest rates right now."
The markets are discounting a 3% chance of a +25 bp rate hike at the next FOMC meeting on June 16-17.
The generally favorable Q1 earnings season is winding down. As of Wednesday, 84% of the 485 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
Overseas stock markets settled mixed on Wednesday. The Euro Stoxx 50 closed down -0.89%. China's Shanghai Composite closed up +0.22%. Japan's Nikkei Stock Average rallied to a new record high and closed up +2.50%.
Interest Rates
September 10-year T-notes (ZNU6) on Wednesday closed down -8 ticks, and the 10-year T-note yield rose +4.6 bp to 4.489%. T-note prices were under pressure on Wednesday amid an escalation of US-Iran tensions, which lifted WTI crude oil by more than +2% to a 1.5-week high, boosting inflation expectations. T-notes added to their losses on Wednesday after US economic reports showed the May ADP employment change, the May ISM services index, and Apr factory orders rose more than expected, hawkish factors for Fed policy. The Fed Beige Book also reported rising inflation pressures and was bearish for T-notes.
European government bond yields moved higher on Wednesday. The 10-year German Bund yield climbed to a 1.5-week high of 3.042% and finished up +6.0 bp to 3.035%. The 10-year UK gilt yield rose to a 1.5-week high of 4.939% and finished up +7.2 bp to 4.931%.
The Eurozone May S&P composite PMI was revised upward by +1.0 to 48.5 from the previously reported 47.5.
Eurozone Apr PPI rose +4.9% y/y, right on expectations and the fastest pace of increase in more than 3 years.
The UK May S&P services PMI was revised upward by +1.4 to 49.3 from the previously reported 47.9.
Swaps are discounting a 98% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.
US Stock Movers
Software stocks sold off on Wednesday, pressuring the broader market. Datadog (DDOG), Atlassian Corp (TEAM), and ServiceNow (NOW) closed down more than -7%, and International Business Machines (IBM) closed down more than -6% to lead losers in the Dow Jones Industrials. Also, Palantir Technologies (PLTR) closed down more than -6%, and Oracle (ORCL) closed down more than -5%. In addition, Salesforce (CRM) closed down more than -4%, and Autodesk (ADSK) and Intuit (INTU) closed more than -3%. Finally, Microsoft (MSFT) and Adobe Systems (ADBE) closed down more than -2%, and Workday (WDAY) closed down more than -1%.
Cybersecurity stocks retreated on Wednesday, led by a -7% decline in Okta (OKTA) and a -6% decline in Zscaler (ZS). Also, Palo Alto Networks (PANW) closed down more than -5% despite reporting better-than-expected Q3 earnings, as it failed to meet elevated buy-side expectations. In addition, Cloudflare (NET) and CrowdStrike Holdings (CRWD) closed down more than -2%, and Fortinet (FTNT) closed down more than -1%.
Private credit stocks faltered on Wednesday as the 17% redemption requests for Cliffwater’s private credit fund weighed on alternative asset stocks. Carlyle Group (CG) closed down more than -4%, and Ares Management (ARES), KKR & Co (KKR), Blackstone (BX), and Blue Owl Capital (OWL) closed down more than -3%. Also, Apollo Global Management (APO) and BlackRock (BLK) closed down more than -2%.
Chipmakers and AI-infrastructure stocks rallied on Wednesday, providing support to the overall market. Sandisk (SNDK) closed up more than +6% to lead gainers in the Nasdaq 100, and Western Digital (WDC) closed up more than +5%. Also, Intel (INTC), Advanced Micro Devices (AMD), and ON Semiconductor (ON) closed up more than +4%,and Analog Devices (ADI), KLA Corp (KLAC), and Qualcomm (QCOM) closed up more than +3%. In addition, Applied Materials (AMAT), ARM Holdings Plc (ARM), and Lam Research (LRCX) closed up more than +2%.
Global Payments (GPN) closed down more than -8% after Susquehanna cut its price target on the stock to $111 from $119, noting that Middle East travel exposure will remain a “burden.”
Ulta Beauty (ULTA) closed down more than -4% after analysts noted the company’s annual guidance implies the outlook for the second half of the year is weaker than expected.
Gitlab (GTLB) closed down more than -2% after announcing that it will cut about 14% of its workforce and exit 22 countries as part of a restructuring.
Medtronic Plc (MDT) closed up more than +6% after reporting Q4 revenue of $9.81 billion, above the consensus of $9.64 billion.
GameStop (GME) closed up more than +6% after reporting Q1 net sales rose +14% y/y to $835.3 million and said its board of directors approved a $2 billion share repurchase authorization.
Meta Platforms (META) closed up more than +4% after announcing it is selling access to an artificial intelligence agent called Meta Business Agent, which will chat with a business’s customers over WhatsApp, Messenger, and Instagram.
Marvel Technology (MRVL) closed up more than +3% today, adding to Tuesday’s +32% surge, after Nvidia CEO Huang predicted that the company will be the next to hit a $1 trillion valuation, more than five times its current market capitalization.
Sherwin-Williams (SHW) closed up more than +1% after the company and Nippon Paint abandoned efforts to jointly acquire Akzo Nobel.
Earnings Reports(6/4/2026)
Brown-Forman Corp (BF/B), Ciena Corp (CIEN), Cooper Cos Inc/The (COO), Docusign Inc (DOCU), Guidewire Software Inc (GWRE), Lululemon Athletica Inc (LULU), Rubrik Inc (RBRK), Samsara Inc (IOT), Toro Co/The (TTC).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Retreat as US-Iran Peace Hopes in Doubt

Key Points
Blackstone maintains a dominant position in the alternative asset market with massive scale in real estate and credit.
Apollo Global Management utilizes a unique integrated model that pairs asset management with its Athene retirement services.
Which alternative asset manager is the better bet for investors in 2026?
Alternative asset management has shifted from a highly profitable niche on Wall Street to a central pillar of modern portfolios. Choosing between Blackstone (NYSE:BX) and Apollo Global Management (NYSE:APO) requires understanding two distinct approaches to private capital.
Blackstone is a massive, diversified manager known for its dominant real estate presence, while Apollo focuses heavily on credit and its integrated retirement services business. They are frequently compared because they both seek to provide high-yielding alternatives to traditional stock and bond investments for a global client base.
The case for Blackstone
Blackstone operates as the world’s largest alternative asset manager, overseeing a portfolio that includes real estate, private equity, and infrastructure that total more than $1.3 trillion AUM. The company serves institutional and individual investors through its massive scale, which includes nearly 12,500 real estate assets and over 250 portfolio companies.
In FY 2025, the company demonstrated the strength of its diversified platform within the financial stocks sector. Revenue reached more than $14.4 billion, representing growth of approximately 12.2% compared to the previous year. This performance resulted in a net margin of close to 21.8%, which measures how much profit a company keeps from every dollar of sales. Consolidated net income for the period was roughly $3.0 billion.
As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 0.61x. This metric shows the total debt used to finance assets relative to the value of shareholder equity. The current ratio, which measures the ability to cover short-term debts with assets, was nearly 0.7x. Free cash flow, calculated as cash from operations minus capital expenditures, was close to $4.6 billion in fiscal year 2025.
The case for Apollo Global Management
Apollo Global Management distinguishes itself by integrating retirement income solutions with traditional alternative asset management. The firm operates a robust retirement services business through its subsidiary, Athene, which provides a steady stream of capital for investment. This strategy allows Apollo to serve a broad spectrum of clients, including institutions and individuals seeking long-term retirement security. The firm manages assets across global wealth and principal investing markets without reporting concentration among specific major customers.
For FY 2025, Apollo reported revenue of roughly $32.5 billion, an increase of approximately 22.7% over the prior fiscal period. This higher revenue base relative to its peers supported a net margin of 11%. The company generated consolidated net income of approximately $3.5 billion during this period. These figures highlight the significant scale of its combined asset management and insurance operations.
According to its December 2025 balance sheet, Apollo maintains a debt-to-equity ratio of approximately 0.3x. This indicates a lower level of total debt relative to its equity base compared to many industry peers. The current ratio for financial stocks was roughly 0.8x. Free cash flow for the period reached nearly $7.3 billion, providing significant capital for reinvestment or shareholder returns.
Risk profile comparison
Blackstone faces risks related to the volatility of performance revenues, which are incentive fees that depend on unpredictable investment realizations. The company is also highly dependent on fundraising from third-party investors, which can be hindered by economic shifts or fee compression. Regulatory scrutiny and intense competition from firms like KKR can limit growth opportunities. Furthermore, the loss of key personnel like co-founder Stephen A. Schwarzman could impact the firm’s ability to execute its long-term strategy.
Apollo Global Management deals with earnings variability driven by the timing of transaction fees and investment returns. A major risk factor is its reliance on Athene, where any credit rating downgrade or regulatory capital change could harm the broader business. Like its competitors, including Brookfield Asset Management, Apollo must navigate complex global regulations regarding sustainable finance and artificial intelligence. Reputational risks stemming from potential employee misconduct also pose a threat to its ability to attract institutional capital.
Valuation comparison
Apollo Global Management appears to be the more affordable option based on future earnings estimates, trading at a lower Forward P/E and P/S ratio than Blackstone.
Forward P/E
19.5x
14.2x
16.6x
P/S ratio
7.3x
2.4x
Sector benchmark uses the SPDR XLF sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Alternative asset managers like Blackstone and Apollo Global Management have thrived because they offer investors—usually institutions like pension funds, insurance companies, and endowments—two things: a hedge against stock and bond market turmoil and outsize returns compared to both. The companies then earn fees and a cut of profits on the money investors give them.
A key for investors to look at is fee-earning assets under management. Blackstone’s is massive, ending fiscal 2025 at around $922 billion. Apollo Global Management ended its most recent year about a third the size, at $322 billion. Both of those provide a good base for long-term revenue to continue.
I like Apollo for the pace of growth in its asset base. Fee-earning AUM jumped 44% last year compared to Blackstone’s 11% rise. A key difference in the firms’ strategies likely feeds into that: Apollo has focused on growing retirement assets through Athene, while Blackstone leans heavily on credit and insurance and real estate, each roughly one-third of its AUM. That means Blackstone is more exposed to interest rate hikes than Apollo’s retirement business. Apollo’s price-to-sales ratio and forward price-to-earnings is more attractive too.
Given the world of retirement planning opens up Apollo more to the wealth of individuals’ retirement funds, it looks to be the better bet for 2026.
Should you buy stock in Blackstone right now?
Before you buy stock in Blackstone, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Blackstone wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $449,393!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,366,006!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 3, 2026.
Brendan Coffey does not have any position in the stocks mentioned.The Motley Fool has positions in and recommends Blackstone, Brookfield Asset Management, and KKR. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Blackstone vs. Apollo Global: Which Alternative Asset Giant Is a Better Buy in 2026?

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Monday, shares of Blackstone Inc (Symbol: BX) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $111.79 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 44.0. A bullish investor could look at BX's 29.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of BX shares:
Looking at the chart above, BX's low point in its 52 week range is $62.24 per share, with $149.78 as the 52 week high point — that compares with a last trade of $114.72.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Blackstone Becomes Oversold (BX)

The S&P 500 Index ($SPX) (SPY) today is down -0.40%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.74%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.08%. June E-mini S&P futures (ESM26) are down -0.48%, and June E-mini Nasdaq futures (NQM26) are down -0.08%.
Stock indexes are sliding today, with the Nasdaq 100 falling from a new record high. The broader market is under pressure today as the US and Iran clashed overnight, sending WTI crude oil prices up more than +1% to a 1.5-week high. Shortly after disabling an empty oil tanker heading back to Iran, the US military said it came under missile and drone attacks as Iran targeted the US’s Bahrain naval base and the Ali Al-Salem airbase in Kuwait. US forces struck a communications tower on the Iranian island of Qeshm near the Strait of Hormuz as part of the skirmishes. In addition, weakness in software companies, cybersecurity, and private credit stocks today is weighing on the overall market.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
On the positive side, AI-infrastructure spending continues to support technology stocks. Marvell Technology is up more than +7% today, adding to Tuesday’s 32% surge, to lead chipmakers higher after Nvidia CEO Huang predicted the company would be the next to hit a $1 trillion valuation, more than five times its current market capitalization.
Signs of strength in the US economy are also supportive of stocks after today’s reports showed the May ADP employment change, the May ISM services index, and Apr factory orders rose more than expected.
The US May ADP employment change rose 122,000, slightly stronger than expectations of 120,000 and the biggest increase in 16 months.
The US May ISM services index rose +0.9 to 54.5, stronger than expectations of 53.8. The May ISM services prices paid sub-index rose +0.6 to a 3.75-year high of 71.3, although below expectations of 72.3.
US Apr factory orders rose +4.8% m/m, stronger than expectations of +4.6% m/m and the largest increase in 11 months.
US MBA mortgage applications fell -2.5% in the week ended May 29, with the purchase mortgage sub-index down -2.9% and the refinancing mortgage sub-index down -2.3%. The average 30-year fixed rate mortgage fell -8 bp to 6.57% from 6.65% in the prior week.
The markets are discounting a 3% chance of a +25 bp rate hike at the next FOMC meeting on June 16-17.
The generally favorable Q1 earnings season is winding down. As of today, 84% of the 485 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.66%. China's Shanghai Composite closed up +0.22%. Japan's Nikkei Stock Average rallied to a new record high and closed up +2.50%.
Interest Rates
September 10-year T-notes (ZNU6) today are down -6 ticks, and the 10-year T-note yield is up +3.7 bp to 4.481%. T-note prices are under pressure today as an escalation of US-Iran tensions lifted WTI crude oil by more than +1% to a 1.5-week high, boosting inflation expectations. T-notes added to their losses today after US economic reports showed the May ADP employment change, the May ISM services index, and Apr factory orders rose more than expected, hawkish factors for Fed policy.
European government bond yields are moving higher today. The 10-year German Bund yield is up +4.5 bp to 3.019%. The 10-year UK gilt yield is up +5.2 bp to 4.911%.
The Eurozone May S&P composite PMI was revised upward by +1.0 to 48.5 from the previously reported 47.5.
Eurozone Apr PPI rose +4.9% y/y, right on expectations and the fastest pace of increase in more than 3 years.
The UK May S&P services PMI was revised upward by +1.4 to 49.3 from the previously reported 47.9.
Swaps are discounting a 97% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.
US Stock Movers
Software stocks are sliding today, pressuring the broader market. Datadog (DDOG) is down more than -8% to lead losers in the Nasdaq 100, and International Business Machines (IBM) is down more than -6% to lead losers in the Dow Jones Industrials. Also, Atlassian Corp (TEAM) is down more than -6%, and Oracle (ORCL) is down more than -5%. In addition, ServiceNow (NOW), Salesforce (CRM), and Palantir Technologies (PLTR) are down more than -4%, and Microsoft (MSFT) and Intuit (INTU) are down more than -3%. Finally, Workday (WDAY), Autodesk (ADSK), and Adobe Systems (ADBE) are down more than -2%.
Cybersecurity stocks are retreating today, led by a -6% decline in Palo Alto Networks (PANW) despite reporting better-than-expected Q3 earnings, as it failed to meet elevated buy-side expectations. Also, Okta (OKTA) is down more than -6%, and Zscaler (ZS) is down more than -5%. In addition, Cloudflare (NET) is down more than -3%, CrowdStrike Holdings (CRWD) is down more than -1%, and Fortinet (FTNT) is down -0.45%.
Private credit stocks are faltering today as the 17% redemption requests for Cliffwater’s private credit fund weighed on alternative asset stocks. Ares Management (ARES) and KKR & Co (KKR) are down more than -5%, and Carlyle Group (CG) and Blackstone (BX) are down more than -4%. Also, Apollo Global Management (APO) is down more than -3%, and Blue Owl Capital (OWL) and BlackRock (BLK) are down more than -2%.
Chipmakers and AI-infrastructure stocks are climbing today, providing support to the overall market. Western Digital (WDC) is up more than +6% to lead gainers in the S&P 500 and Nasdaq 100, and Sandisk (SNDK), Intel (INTC), and Qualcomm (QCOM) are up more than +4%. Also, Applied Materials (AMAT), ON Semiconductor (ON), and Seagate Technology Holdings Plc are up more than +3%, and Advanced Micro Devices (AMD), Lam Research (LRCX), Analog Devices (ADI), and KLA Corp (KLAC) are up more than +2%.
Ulta Beauty (ULTA) is down more than -4% after analysts noted the company’s annual guidance implies the outlook for the second half of the year is weaker than expected.
Gitlab (GTLB) is down more than -3% after announcing that it will cut about 14% of its workforce and exit 22 countries as part of a restructuring.
GameStop (GME) is up more than +7% after reporting Q1 net sales rose +14% y/y to $835.3 million and said its board of directors approves a $2 billion share repurchase authorization.
Marvel Technology (MRVL) is up more than +6% today, adding to Tuesday’s +32% surge, after Nvidia CEO Huang predicted that the company will be the next to hit a $1 trillion valuation, more than five times its current market capitalization.
Medtronic Plc (MDT) is up more than +4% after reporting Q4 revenue of $9.81 billion, above the consensus of $9.64 billion.
Sherwin-Williams (SHW) is up more than +2% after the company and Nippon Paint abandoned efforts to jointly acquire Akzo Nobel.
IREN Ltd (IREN) is up more than +1% after signing a transmission connection agreement to support a planned 800-megawatt data center campus in Bundey, South Australia.
Earnings Reports(6/3/2026)
Broadcom Inc (AVGO), CrowdStrike Holdings Inc (CRWD), Five Below Inc (FIVE), Macy's Inc (M), Medtronic PLC (MDT), Ollie's Bargain Outlet Holding (OLLI), PVH Corp (PVH), Thor Industries Inc (THO), Veeva Systems Inc (VEEV).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.