New York, Feb 23, 2026, 17:37 ET — After-hours
Blackstone Inc dropped 6.2% to $113.71 after hours on Monday, with shares moving between $121.01 and $111.06 during a choppy session. Volume came in north of 18 million shares. The stock’s 52-week range sits at $111.04 to $190.09. (Investing.com)
This came as Wall Street struggled through a choppy session—the S&P 500 slid 1.04%, financials tanked 3.3%. Traders juggled anxiety over potential AI shakeups and renewed tariff questions. “Sell first, assess later,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. (Reuters)
The uneasy risk-off mood is hitting alternative asset managers, especially those tied to credit and deal flow. According to Morningstar DBRS, private credit quality keeps sliding — downgrades outpaced upgrades by a factor of 3.3 in February, and default rates jumped to 4%, up from 3.2% a year ago. “The outlook for 2026 remains negative,” Michael Dimler, senior vice president for private credit ratings at Morningstar DBRS, told Reuters. (Reuters)
Lenders in the leveraged loan space—traditionally tapped by heavily indebted firms—are bumping up spreads for software names, citing mounting AI threats to their business models. UBS credit strategist Matthew Mish is looking for AI disruption risk to show up more clearly through 2026 and into early 2027. In a scenario where disruption hits harder and faster, defaults could climb to 3%-5%, he said, well above the 1%-2% range the market is currently pricing in. Jeremy Burton, who manages portfolios at PineBridge Investments, flagged that software and business services probably won’t be “hot sectors for issuance over the next year.” (Reuters)
Other firms took losses as well. Reuters’ “Trading Day” column flagged Apollo dropping 5% and KKR shedding 9% on Monday. Blue Owl was down another 3% after freezing withdrawals at one of its funds. UBS analysts put worst-case private credit defaults rising 8% over the next year. (Reuters)
Citigroup has agreed to offload a 24% stake in Banamex to a consortium featuring Blackstone-managed funds, pulling in roughly $2.5 billion. The bank anticipates wrapping up the deal this year, which would leave Citi holding onto 49% of Banamex. (Reuters)
Blackstone Life Sciences has reached a research and development funding deal with Johnson & Johnson focused on bleximenib, an experimental therapy targeting acute myeloid leukemia. “We are excited by this agreement with Johnson & Johnson,” said Dr. Nicholas Galakatos, who heads the global unit. Senior managing director Dr. Ari Brettman added, the aim is to bring the drug “to patients across the globe.” (Blackstone)
The larger concern for Blackstone holders: a continued slump in software could seep into loan portfolios and private asset marks, triggering more write-downs and choking off fresh inflows to credit vehicles. If those fears keep moving through the market, any upticks could be short-lived.
The next data point lands Friday, Feb. 27, at 8:30 a.m. ET, when the U.S. Labor Department posts January’s producer price index. An unexpected jump could rattle rates and touch off fresh moves in financial stocks and credit-focused managers. (bls.gov)
