Markets Have Had 2 Weeks of Pain. That Luck Won't Change on Friday the 13th. -- Barrons.com

Dow Jones03-13

Wall Street has heeded a host of superstitions over its 230-year history, with traders wise to the bad mojo of using a red pen, the importance of wearing the same necktie during a winning streak, and always "sell in May and go away."

It's also linked to the modern evolution of Friday the 13th as an unlucky day, based in part on Thomas Lawson's 1907 best-seller about a corrupt stockbroker who crashes the market.

Bad omens abound as investors look to close out the second week of trading since the U.S. war with Iran, with oil trading firmly north of $100 a barrel, Wall Street's so-called fear gauge, the VIX, nearing the 30-point mark -- a level that usually signals extreme market stress -- and bond market volatility finally awakening from its yearlong slumber.

Stocks are looking weaker, as well, with the S&P 500 having fallen around 3% since the U.S. launched its first wave of attacks on Feb. 28, dragging the index back to the lowest levels since late November.

What's perhaps even more worrying than the ancient belief of a back-luck Friday is the modern reality of market uncertainty.

Few experts are brave enough to predict when, or even how, the conflict is likely to end, or what the costs will ultimately be. And that grim calculus is coming soon.

Investors will first need to get past Friday, which the VIX reading suggests could see a near 120-points swing for the S&P 500 before the close of trading.

Friday, the Thirteenth author Lawson, himself a noted stock manipulator who used the mass media of his era to influence markets and make and lose a fortune, called it "the Wall Street hoodoo-day."

We'll all find out together if, with the original stock market superstition, life actually imitates art.

-- Martin Baccardax

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Importers Face New Challenges Under Trump's 'Plan B' Tariffs

The U.S. is starting to roll out its " Plan B" tariff strategy. The Trump administration is racing to rebuild tariff revenue it has lost since the Supreme Court struck down the tariffs it imposed using emergency powers. The latest shift creates a new set of complications for importers.

   -- Though overall tariff rates could end up slightly lower, the impact from 
      this approach could possibly hit companies differently than the tariffs 
      President Donald Trump imposed last April with emergency powers. It could 
      also create winners and losers within sub-sectors. 
 
   -- U.S. Trade Representative Jamieson Greer is starting investigations under 
      Section 301 of the Trade Act of 1974, looking into structural excess 
      capacity and production in manufacturing sectors in China, the European 
      Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, 
      Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India. 
 
   -- Canada and the United Kingdom weren't on this list, but Monica Gorman, 
      managing director at Crowley Global Advisors, cautions against 
      interpreting that they will be spared. She expects the administration to 
      unveil multiple and possibly overlapping Section 301 probes, including 
      one related to forced labor. 
 
   -- The challenge for importers: The tariffs that emerge from these probes 
      are unlikely to be identical to -- or hit sectors in the same way -- as 
      the tariffs that were struck down, requiring companies to conduct a new 
      round of analysis, says Ryan Majerus, partner at King & Spalding. 

What's Next: The comment period starts March 17 with the USTR holding a hearing on May 5. Potential tariff remedies could follow. Trade lawyers anticipate the tariffs would be ready by July, when the temporary 10% tariffs Trump imposed in February expire. Exemptions could be far more limited.

-- Reshma Kapadia

CFTC Offers Its First Guidance for Sports Prediction Markets

The Commodity Futures Trading Commission is in active discussion with sports leagues over sports prediction markets and is advising prediction-market platforms to consider whether markets based on individual player performance, so-called prop bets, are susceptible to manipulation.

   -- The regulator's division of market oversight has sent an advisory 
      document to designated contract markets, the regulator's term for those 
      companies licensed to sell event contracts, which is what prediction 
      markets do. This is as the CFTC prepares new rules for prediction markets 
      and seeks public comment. 
 
   -- The CFTC wants to make sure the platforms aren't listing contracts that 
      can be susceptible to manipulation, suggesting prediction markets may 
      want to think twice before listing sports contracts that resolve or 
      settle based on the action of a single individual. These prop bets are 
      big moneymakers for traditional sportsbooks. 
 
   -- The advisory said the CFTC is talking with sports leagues and their 
      governing bodies. Appropriate information sharing by these entities with 
      the CFTC may lead to enhanced CFTC oversight capabilities, it said. It 
      encourages prediction markets to work with leagues to ensure that 
      sports-related contracts resolve correctly. 
 
   -- Data-sharing and cooperation on integrity monitoring is common in 
      partnerships between sports leagues and traditional sportsbooks like the 
      one operated by DraftKings. But most pro leagues aren't working with 
      prediction markets, the NHL being an exception. 

What's Next: More than 20 lawsuits are under way as courts decide whether event contracts that pay out when a team wins should be considered sports gambling subject to state regulation. Kalshi, the leading U.S. prediction market, told Barron's it looks forward to working with regulators to make markets fair and safe.

-- Nick Devor

Honda Latest to Unveil Losses as EV Winter Sets In

The EV winter is here, brought on by poor planning, overly ambitious sales targets, and changing government policies. Honda Motor announced losses of about $15.7 billion as it reassesses its electric vehicle strategy amid changing Trump administration policies and a slowdown in U.S. EV sales.

   -- To respond to rapid changes in the current business environment, Honda 
      said it is making progress in reorganizing its strategic framework and 
      re-establishing its competitive strengths. That means fewer EVs, more 
      hybrids, and a better balance of better products in response to consumer 
      demand. 
 
   -- Ford Motor has announced $19.5 billion in EV-related charges, General 
      Motors $7.6 billion, and Chrysler's parent Stellantis $20 billion. Their 
      more than $60 billion in combined EV charges is one-third of their $180 
      billion in combined market value. 
 
   -- Separately, Rivian Automotive unveiled prices and specifications for its 
      long-awaited R2 Platform, a new truck that is supposed to unlock sales 
      growth during this difficult EV period. One of two premium versions 
      starts at $54,000, and two standard versions, coming in 2027, start at 
      $45,000. 
 
   -- Rivian's nearly $160 billion valuation in 2021 was based on the belief 
      that Americans would buy 3 million EVs in 2025. But EV sales were closer 
      to 1.3 million, flat with 2024, and about 8% of new U.S. car sales, 
      one-quarter China's rate. 

What's Next: Chinese policies heavily incentivize EV purchases, and China's charging infrastructure is more developed. The Trump administration has rolled back several EV-friendly policies and plans for EV chargers. EV sales could fall 50% this year. Market leader Tesla has already turned its focus to AI.

-- Al Root and Janet H. Cho

Morgan Stanley Private Credit Fund Caps Withdrawals

Morgan Stanley's investment management arm became the latest asset manager to cap withdrawals from a private credit fund, telling investors in a letter that it saw a wave of redemption requests this quarter.

   -- The company's North Haven Private Income Fund, which has $7.6 billion in 
      total investments, received investor requests to buy back around 10.9% of 
      outstanding shares in its quarterly tender offer. The fund capped 
      repurchases at 5%, its previously disclosed threshold. 
 
   -- The volume of withdrawal requests is further evidence of investors' 
      waning confidence in the health of private credit funds. 
 
   -- Blue Owl Capital and BlackRock have also limited withdrawals from certain 
      funds. And J.P. Morgan tightened lending to private credit funds and 
      marked down the value of loans to software companies in its portfolios, 
      according to reports. 
 
   -- Morgan Stanley's fund acknowledged the industry's wobbles over the past 
      year, pointing to a "contraction in asset yields, uncertainty surrounding 
      the recovery in M&A and speculation on credit deterioration." 

What's Next: Many private market lenders are exposed to industries at the epicenter of the AI disruption trade, and some of them have been caught out by falling company values and illiquid loan portfolios. "Though these factors have affected sentiment for the asset class, we're optimistic that some of these pressures may soon ease," the Morgan Stanley investor letter said.

-- Nate Wolf and Alex Kozul-Wright

Global Art Sales Rebounded to $59.6 Billion in 2025

Global art market sales reached $59.6 billion last year as high-quality works drew people back to the market after two years of declines. Although the 4% gain is encouraging, the total is still nearly $9 billion below the 2022 peak, said the Art Basel and UBS Global Art Market Report.

   -- A separate report from Bank of America and ArtTactic released this week 
      said U.S. public auction sales rose 23.1%, propelled by major estate 
      collections and renewed demand for historical names. The U.S. captured a 
      record 69% of global auction sales last year. 
 
   -- Sales jumped 54.1% in the second half of 2025, after contracting 5.6% in 
      the first half, the BofA report said. The November surge was led by 
      Leonard Lauder's $527.5 million collection at Sotheby's, including Gustav 
      Klimt's Portrait of Elisabeth Lederer, which sold for an artist-record 
      $236.4 million. 
 
   -- Matthew Newton, head of UBS Art Advisory Americas, told Barron's that the 
      recent art market decline was more about "sellers being willing to sell 
      than buyers being willing to buy." Transaction volume increased 2% from 
      2024, driven by more sales of works priced below $50,000. 
 
   -- Globally, active bidding on art works drove the public auction market 9% 
      higher over 2024, driven by 30% growth in sales above $10 million. But 
      galleries and dealers only saw a 2% increase in sales, with much of that 
      uptick likely from more high-ticket sales, the Art Basel-UBS report said. 

What's Next: The Bank of America-ArtTactic report said that artworks resold within five years resulted in an annualized loss of 5.7%, while those held five to 10 years maintained their purchase prices. Collectors, on average, have to hold a work for a decade or more to see positive returns.

-- Abby Schultz and Janet H. Cho

-- Newsletter edited by Liz Moyer, Patrick O'Donnell, Rupert Steiner

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

(END) Dow Jones Newswires

March 13, 2026 06:53 ET (10:53 GMT)

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