Major US stock indices close lower. S&P and NASDAQ index down for the monthWhy private equity stocks are getting wrecked todayTrump: Not happy with Iran but more talks expected on FridayAtlanta Fed GDPNow growth estimate for Q1 3.0% versus 3.1% lastIran strikes loom large over today's tradeSilver sprints higher, gains more than 5%US December construction spending +0.3% vs +0.3% expectedTech sector under pressure: Energy and healthcare offer a safe havenCanada Q4 GDP -0.6% vs 0.0% expectedUS January PPI final demand Y/Y +2.9% vs +2.6% expectedThe USD is little changed to start the NA session. What next technically?Germany February preliminary CPI +1.9% vs +2.0% y/y expectedHow have interest rate expectations changed after this week's events?investingLive European markets wrap: Dollar steady, risk trades on edge amid cautious moodThe North American session evolved into a steady shift toward caution as markets moved away from early stability and into a broader risk-off tone. What began as a data-driven session ultimately turned into a reassessment of risk across multiple fronts — inflation persistence, emerging credit concerns, and rising geopolitical uncertainty.Equity markets struggled to gain traction throughout the day, with sellers gradually taking control as investors digested stronger-than-expected inflation data and signs of stress building beneath the surface of financial markets. By the close, the major US indices finished lower, capping a difficult February for growth-oriented stocks.The NASDAQ led declines for the month with a decline of -3.3%, highlighting continued pressure on valuation-sensitive sectors, while the Dow showed relative resilience as capital rotated toward more defensive and cyclically stable names. The broader message from equities was clear: investors are becoming less comfortable with the assumption of imminent Federal Reserve easing, and the concerns about AI pace continuing.Inflation back in focusThe catalyst reinforcing caution for inflation came from the latest US producer price data. January PPI surprised to the upside (2.9% versus 2.6% expected), reminding markets that inflation pressures remain sticky even as growth stays firm.This combination is particularly challenging for risk assets. Strong growth normally supports equities, but when accompanied by persistent inflation, it instead implies policy may remain restrictive longer than investors had anticipated.Supporting data painted a picture of an economy that is slowing only modestly:Atlanta Fed GDPNow: Q1 growth estimate eased slightly to 3.0% from 3.1%US construction spending: +0.3% (in line with expectations)The takeaway was not economic weakness — but rather economic resilience that delays rate cuts, a dynamic markets increasingly view as unfavorable for equities.Credit concerns emerge beneath the surfaceWhile macro data shaped the backdrop, the most notable equity theme came from sharp selling in private-equity-linked firms. Shares across the sector fell aggressively, signaling rising investor concern about leveraged finance exposure and private credit valuations.Key declines included:Jefferies −10.3%Apollo −8.4%KKR −7.3%Ares −7.1%Goldman Sachs −7%The selling followed warnings tied to collateral shortfalls and leveraged loan exposure, reviving fears that higher interest rates are beginning to pressure financing structures built during the ultra-low-rate era.Importantly, markets reacted not just to one event, but to what it potentially represents — hidden fragility within private credit markets.Geopolitics adds another layer of uncertaintyAt the same time, geopolitical risks intensified as headlines surrounding potential Iran-related strikes circulated through the session. The uncertainty helped keep risk appetite contained and added an additional inflation premium through energy-market sensitivity.The geopolitical backdrop reinforced defensive positioning rather than triggering panic, but it contributed to the steady erosion of equity momentum as the day progressed.Commodities respond: silver surgesOne of the clearest expressions of the day’s macro shift appeared in commodities markets.Silver surged more than 6%, benefiting from a combination of forces:renewed inflation concerns after PPI,safe-haven demand amid geopolitical tensions,continued structural industrial demand tied to electrification themes.Gold also remained firmly supported, reflecting growing demand for real assets as investors hedge both inflation and macro uncertainty.Cross-market messageAcross asset classes, markets appeared to be transitioning away from the early-year “soft landing with rapid easing” narrative toward a more complex late-cycle environment.The session revealed several emerging themes:Higher-for-longer rate expectations returningCredit sensitivity becoming a market focusRotation away from leverage and duration riskDemand increasing for inflation hedges and real assetsRather than a single catalyst driving markets, the day reflected a convergence of pressures — inflation persistence, financial-system stress signals, and geopolitical risk — each reinforcing the others.Bottom lineThe North American session marked a subtle but important shift in tone. Economic data continues to show resilience, but that strength is now working against risk assets by keeping monetary policy restrictive. At the same time, cracks appearing in leveraged finance and rising geopolitical tensions are encouraging investors to reduce exposure to riskier segments of the market.In short, markets are beginning to trade less on optimism about growth and more on risk management and capital preservation — a transition that often defines the later stages of a cycle. This article was written by Greg Michalowski at investinglive.com.