IBM has agreed to pay $17 million to settle a U.S. government investigation into its diversity, equity and inclusion practices, according to Reuters reporting. The settlement resolves a probe into the technology company's DEI programs, though specific details of the allegations were not immediately disclosed.

Separately, the Federal Reserve is seeking detailed information from U.S. banks about their exposure to private credit firms, according to Bloomberg. The regulatory inquiry reflects growing concerns about banks' connections to the rapidly expanding private credit market, which has grown significantly in recent years as an alternative to traditional lending.

The private credit sector has attracted increased attention from both investors and regulators. Wall Street firms are developing new ways to bet against private credit amid concerns about potential risks in the market. Financial Times commentary has called for greater scrutiny and "spring cleaning" of private credit practices.

In related financial markets news, investment firm Tiger Global has backed bagel company PopUp Bagels at a $300 million valuation. Blackstone is also preparing for a $2 billion initial public offering of a data center acquisition firm, highlighting continued investor interest in technology infrastructure assets.

Meanwhile, Goldman Sachs traders report seeing record levels of fast-money flows heading into U.S. stocks, according to Bloomberg. The activity suggests heightened trading momentum in equity markets as investors position themselves across various asset classes.