Hedges Back in Style

Investors are scrambling for new hedges as geopolitical risks reshape playbooks.

Author

Ankit Sinha
March 13, 2026

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Market Snapshot

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Market News

Oil’s Back… And Markets Hate It

Markets had a rough session as WTI Crude prices surged above $100 per barrel, a level not seen since 2022, after disruptions in the Strait of Hormuz threatened global energy flows.

The spike in crude revived fears of higher inflation and slower growth, sending the S&P 500 down 1.5% to its lowest level since November.

Banks were hit particularly hard as stress surfaced in the $1.8 trillion private-credit market.

Redemption requests forced Morgan Stanley and Cliffwater LLC to cap withdrawals from some funds, while Deutsche Bank AG disclosed roughly $30 billion in exposure to the sector. Adding to the gloomy mood, Adobe Inc. issued a lukewarm outlook and announced its CEO will step down.

Meanwhile, the bond market also felt the pressure. Short-dated Treasuries slid as traders scaled back expectations of a 2026 Federal Reserve interest-rate cut, while the U.S. dollar strengthened and gold prices slipped.

Geopolitics remained the biggest driver of market anxiety, with the ongoing conflict involving Iran raising the risk of prolonged disruptions to oil supplies. Analysts warned that if the Strait of Hormuz remains constrained, energy prices could remain elevated, adding fresh inflationary pressures to the global economy.

Peel Take: WTI Crude above $100, private-credit jitters, and a gloomy update from Adobe Inc. gave markets a triple headache. The S&P 500 slid 1.5% as stress hit banks tied to private credit, while traders dialed back bets on a Federal Reserve rate cut. Translation: energy shock + credit nerves = investors reaching for the aspirin.

What's Ripe

Petco Health & Wellness Co. Inc. (WOOF) 34.6%

  • WOOF shares surged 34% even though the company missed quarterly earnings expectations.

  • Investors reacted positively to CEO Joel Anderson’s optimistic outlook and growth plans, which include expanding fresh pet food offerings and increasing the variety of pets sold in stores to drive future sales.

  • Peel Take: The market appears to be focusing more on Petco’s future growth strategy than on the weak earnings report, suggesting investors see potential in higher-margin fresh food and in increased in-store traffic from broader pet offerings.

Bumble Inc. (BMBL) 34.2%

  • BMBL shares jumped 34% after the company reported lower fourth-quarter revenue and a decline in paying users.

  • However, the results beat analysts’ lowered expectations, and CEO Whitney Wolfe Herd highlighted plans to introduce AI-powered tools to help users find more relevant matches, boosting investor optimism.

  • Peel Take: The rally suggests investors were relieved that results weren’t as weak as feared and are encouraged by AI-driven product improvements that could help reaccelerate user growth.

What's Rotten

Rivian Automotive Inc. (RIVN) 8.1%

  • RIVN shares fell 8.1% after the company revealed pricing and specifications for its upcoming R2 vehicle platform.

  • While the announcement met expectations, investors were likely disappointed that more models were not priced below $50,000, which could limit broader market adoption.

  • Peel Take: The decline suggests investors were hoping for more aggressively priced vehicles to expand Rivian’s addressable market and accelerate demand.

Dollar General Corp. (DG) 6.1%

  • DG shares fell 6.1% even though the discount retailer beat analysts’ expectations for quarterly earnings and revenue.

  • The decline followed the company's weaker-than-expected fiscal-year outlook, which disappointed investors.

  • Peel Take: The drop indicates that investors were more concerned about the company’s forward guidance than its strong quarterly results, signaling caution about growth prospects in the coming year.

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Banana Brain Teaser

Previous

At a certain fruit stand, the price of each apple is 40 cents, and the price of each orange is 60 cents. Mary selects a total of 10 apples and oranges from the fruit stand, and the average (arithmetic mean) price of the 10 pieces of fruit is 56 cents. How many oranges must Mary put back so that the average price of the pieces of fruit that she keeps is 52 cents?

Answer: 5

Today

In a box of 12 pens, a total of 3 are defective. If a customer buys 2 pens selected at random from the box, what is the probability that neither pen will be defective?

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Chris, Vyom, Ankit, Mitchell, Fernanda, & Patrick