Wall Street Declines on Private Equity and Tech Weakness

Wall Street closed lower on Thursday, primarily due to significant losses in private equity companies following Blue Owl Capital's decision to sell $1.4 billion in assets and freeze redemptions in one of its funds. This action led to declines in other major private equity firms including Apollo Global Management, Ares Management, KKR & Co., and The Carlyle Group, raising concerns about credit quality and exposure to software stocks. Technology giants like Apple Inc. and Nvidia also dipped, contributing to the S&P 500's decline, as AI-linked stocks faced turbulence over high valuations. Walmart's stock fell after its new CEO, John Furner, presented a conservative fiscal 2027 forecast. In contrast, John Deere jumped after raising its annual profit forecast, and Omnicom Group saw gains after beating revenue estimates. EPAM Systems and Carvana experienced significant drops due to disappointing outlooks and missed profit estimates, respectively. Geopolitical tensions between the United States and Iran also pushed crude oil prices higher. Investors are also analyzing United States===Federal Reserve minutes and upcoming economic data for clues on future interest rate policies.