Dow slides over 260 points as concerns about private credit and Iran tensions pressure markets

Stocks declined Thursday, leaving the S&P 500 hovering near flat for the year, as investors rotated out of financials and kept a close watch on rising tensions between the U.S. and Iran.

The Dow Jones Industrial Average dropped 267.50 points, or 0.54%, to close at 49,395.16. The S&P 500 slipped 0.28% to 6,861.89, while the Nasdaq Composite fell 0.31% to finish at 22,682.73.

Following the move, the S&P 500 is now up about 0.2% for the year, and the Dow has gained more than 2%. The tech-heavy Nasdaq, however, remains down over 2% in 2026.

Private credit names came under pressure after Blue Owl Capital said it would tighten investor liquidity following the sale of $1.4 billion in loan assets, raising concerns about potential risks in the opaque private lending space. Blue Owl shares fell roughly 6%, while Blackstone and Apollo Global Management each dropped more than 5%.

Software stocks also weakened. Salesforce declined more than 1%, Intuit fell around 2%, and Cadence Design Systems slid nearly 3%.

Market sentiment remained cautious as crude oil prices continued to rise amid a standoff between the U.S. and Iran over Tehran’s nuclear program. President Donald Trump said Thursday he would decide within the next 10 days whether to authorize military strikes against Iran.

Adding to the negative tone, Walmart shares slipped more than 1% after the retailer issued a full-year earnings outlook that disappointed investors, overshadowing its stronger-than-expected fourth-quarter results.