After getting walloped yesterday, stocks are trying to bounce back today. Gold, silver, and crude oil prices are all modestly lower, while Treasuries are flat. The US Dollar Index popped back above 100 in recent trading.
After very briefly dipping below $80 a barrel on March 10, WTI crude oil futures have rallied back – nearing $100 again in overnight trading. That’s fueling more knock-on effects, including rising airfares. Advance booking rates on some long-haul domestic and international flights have surged as much as 57%, according to the Wall Street Journal.
DAL, UAL, ARES, BX (1-Month % Change)
Data by YCharts
While higher fares can offset higher costs for jet fuel, they can also deter leisure travelers from booking. The combination of cost pressures and demand concerns have driven airline stocks sharply lower since the war broke out. Delta Air Lines Inc. (DAL) is down 16.4% in the last month, while United Airlines Holdings Inc. (UAL) is off 20.8%.
Meanwhile, rising redemption requests are hitting private credit firms, causing more turmoil in that subsector of the financial industry. Investors are asking for billions of dollars back after a series of high-profile loan defaults and asset writedowns.
As a result, shares of companies like Ares Management Corp. (ARES) and Blackstone Inc. (BX) are tumbling – down 27.9% and 21.3% in the last month, respectively. Credit spreads have also been widening out – though some of that is due to higher market volatility and economic concerns tied to the Middle East conflict.
Speaking of which, investors are pulling money out of stocks, too. Fresh data from LSEG Lipper showed $7 billion in outflows for global equity funds in the week ended March 11. That was the most since mid-December. US stock outflows alone totaled almost $30 billion in the last two weeks.
