FT News Briefing Tech stocks drag Wall Street lower, Greensill files for administration, Apollo merges with Athene
Mar 9, 2021
Tech stocks are sinking, dragging Wall Street down amid inflation concerns and shifting investor focus. Meanwhile, Greensill Capital’s shocking administration filing raises alarms over defaults impacting its major client, GFG Alliance. On a brighter note, a significant merger between Apollo Global Capital and Athene Holding looks to reshape the financial landscape. This move is analyzed for its potential conflicts of interest and implications for investors, especially in light of leadership changes within Apollo.
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Tech Stocks Drag Down Wall Street
- The NASDAQ composite fell 2.4% on Monday, entering a technical correction.
- This 10% drop from its peak last month is attributed to investor nerves about the stimulus package and rising inflation.
Inflation Concerns Spook Investors
- Investors worry about the nearly $2 trillion stimulus package potentially triggering inflation.
- This concern impacts tech stocks with high valuations based on low interest rates and future earnings.
Greensill Capital's Collapse
- Greensill Capital filed for administration, unable to repay a $140 million loan to Credit Suisse.
- Defaults from its key customer, GFG Alliance, contributed to the company's collapse.