Wall Street closed the trading week lower as investors digested fresh inflation data from the consumer price index report and ongoing volatility in energy markets.
For the week, the S&P (SP500) lost 1.60%, while the tech-heavy Nasdaq Composite (COMP:IND) dipped 1.26%, and the blue-chip Dow (DJI) fell 1.98%.
The financial sector recorded losses for the third consecutive week, with State Street Financial Sel Sec SPDR ETF (XLF) sliding 3.32% to close at $48.89.
Financials has emerged as the worst-performing group in the S&P 500 sectors so far in 2026 as investors rotate away from the sector amid heightened market volatility. XLF has pulled back by ~11% year-to-date.
The weekly performance was shaped by escalating geopolitical tensions, sector rotation into defensives, and technical deterioration.
Among the megacap stocks, large diversified banks extended losses from the prior week.
Wells Fargo (WFC) (-7.86% W/W to $74.10), HSBC Holdings (HSBC) (-6.97% W/W to $78.19), and Goldman Sachs Group (GS) (-4.77% W/W to $782.21) topped the list.
Wells Fargo shares fell for seven straight sessions even as the Fed board confirmed the termination of a 2018 consent order, the only remaining consent order against the San Francisco-based bank.
Banks are said to be ramping up their Middle East security measures amid the Iran conflict.
Mastercard (MA) followed, losing 4.66% to close the week at $497.99. This week, the payments company launched a new crypto program to create a forum for dialogue and collaboration among crypto-native companies.
For the largecap stocks, Blue Owl Capital (OWL) was the biggest decliner, having lost 11.53% W/W to $8.75. Private credit concerns resurfaced after a series of recent credit issues and fund restrictions put the fast-growing sector under fresh scrutiny, pressuring shares of several publicly traded alternative asset managers and lenders.
Seeking Alpha created a list of firms with private credit exposure along with their Quant ratings and year-to-date performance, which can be accessed here.
Meanwhile, crypto stocks were the surprise winners in the category, shrugging off the Middle East concerns impacting broader markets.
IREN (IREN) (+13.30% W/W to $41.58) and Circle Internet Group (CRCL) (+13.22% W/W to $115.38) led the gainers.
The crypto sell-off could be entering its final phase, Bloomberg News reported, citing Brett Munster of Blockforce Capital.
The majority of the drawdown appears to be behind us, and the asymmetry is shifting, Munster reportedly said, adding that a potential turnaround could come about mid-year.
The gains came alongside hopes of a more crypto-friendly regulation in the U.S. On March 11, the Securities and Exchange Commission and the Commodity Futures Trading Commission announced an MoU and coordination for “providing a fit-for-purpose regulatory framework for crypto assets and other emerging technologies”, among other things.
Furthermore, crypto stocks, MARA Holdings (MARA) (+16.35% W/W to $9.32) and Figure Technology Solutions (FIGR) (+15.06% W/W to $35.07), led the midcap gainers during the week. Meanwhile, PJT Partners (PJT) (-10.23% W/W to $129.20) and Credit Acceptance (CACC) (-10.06% W/W to $447.79) led the midcap losers.
CACC declined 9.35% on Friday amid a high short interest of 18.35% of the total float (as of February 27). Meanwhile, UBS reduced its price target on PJT Partners to $151 from $180 during the week.
Among smallcap stocks, CION Investment (CION) stood out as a notable decliner, losing 17.61% to $6.55. The company posted a Q4 beat in top- and bottom-line results, but saw its earnings stay unchanged year-over-year and revenue decrease from the prior-year quarter.
Esquire Financial (ESQ) was a significant gainer in the category, adding 10.73% from the prior week to $109.99. This week, Esquire announced the acquisition of Signature Bancorporation in an all-stock transaction, with the aggregate deal value coming to ~$348.4M. Raymond James double upgraded the stock to Strong Buy from Market Perform after the announcement.
Greenlight Capital Re (GLRE) was another winner in the category. The stock benefitted from its Q4 financial results.