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U.S. stocks tumble as Credit Suisse adds more pressure to bank group

AuthorLiz Moyer
Published 03/15/2023, 09:50 AM
Updated 03/15/2023, 12:18 PM
© Reuters.

By Liz Moyer 

Investing.com -- U.S. stocks tumbled as Credit Suisse raised fresh concerns about the banking system.

At 12:14 ET (16:14 GMT), the Dow Jones Industrial Average was down 669 points or 2.1%, while the S&P 500 was down 1.8% and the NASDAQ Composite was down 1.2%.

Credit Suisse Group (NYSE:CS) stock plunged 24% after the Saudi National Bank, a top investor, said regulations prevented it from being able to provide any more financial assistance to the Swiss finance firm.

At the same time, fresh economic data was stoking hopes for a less aggressive Federal Reserve. Retail sales fell 0.4% in February, a greater-than-expected contraction after rising 3.2% in January.

Producer prices rose 4.6% in the year through February, compared with expectations for an increase of 5.4%.

Futures traders are now divided on what the Fed's next move will be. About 60% are betting there won't be an interest rate move next week, while the rest believe the central bank will raise rates by a quarter of a percentage point, according to the Fed Rate Monitor tool.

Bank stocks had recovered somewhat on Tuesday after a rout on Monday because of the sudden collapse of SVB Financial and Signature Bank over the weekend. Regional banks were under pressure again on Wednesday.

Shares of First Republic Bank (NYSE:FRC) were down 18%, while shares of PacWest Bancorp (NASDAQ:PACW) slid 11%.

Big banks were also falling, such as JPMorgan Chase & Co (NYSE:JPM), down 4.9%, and Bank of America Corp (NYSE:BAC), down 1.9%.

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Latest comments

Credit Suisse has a 7B market cap. Basically a penny stock. Disolving it would probably be a net gain for the future.
this a problem created by deregulating the banks ...In 2017 the regional banks and their allies went to the Trump Administration and the Republican Congress to demand deregulating their industry. they were promptly accommodated with a change in policy and we're granted a total relaxation of rules governing their industry.....there were warnings at the time that this new policy could create a unseen catastrophe....
Nothing to do with deregulation, the Feds (Treasury, FDIC, Federal Reserve) have all the tools they need, they're just terrible evaluators of risk. Why did Barney Frank's bank fail??? Isn't he Johnny Regulation?
Wrong! Look up why SVB failed and you’ll see nothing to do with any president. Stop blaming politicians for your lack of understanding of business.
its both. Arrogant and impatient fed and absent bank leadership.
NASDAQ loss is miraculously vanquished, and the S&P is not far behind.  How much of the DOW loss will magically disappear "in late trade?"  After yesterdays criminally manufactured, 30 minute "rally," it's already back green over the last 2 days.  And you wonder why I refer this laughable "market" as the greatest financial fraud in history, and BIGGEST INVESTMENT JOKE IN THE WORLD.
Yes it's pump o clock
Triggered
How come US stock market hasn't plummeted yet? Name one thing that keeps this market and country afloat
you are triggerring the republicans for some reason, they used to be pro business now they are just maga commies
Stellar higher education lol. It has a great entrepreneur culture, but not an stellar higher education...
Right. That's why people from around the world send their kids to college in the US, for an expensive mediocre education. That's why people seek out doctors trained in the Bahamas. That's why US research universities are hotbeds of innovation.
if interest rate increases, problem with banks fundamentals. if no hikes in high inflation environment, problem with voters. what to do? even if u r aggressive, u should not go aggressive. even if u r soft, u should not be soft. where is the way?
Inflation is already headed down. Just need patience now. Fed already raised further than needed because of their impatience.
People lose more money than the benefit of raising rate. Inflation is common and not a problem as long as people have job. No idea what Fed is doing.
Look at the rally, with no catalyst, taking place right now. Noooo, there's no manipulation in the markets!
vetter has a" them" complex....
its called momentum and meme crowd
Swiss government stepping in to help Credit Suisse
investors wealth in Europe and us eroded heavily. if the financial systems and procedures are not corrected, they will continue to loose and economy also recedes. this leads to weak currency and halt in talent migration.
the country having a talent migration is Russia.. so far over 1million young educated Russians have left Russia for the western democracies. .....
bull***t
The artificial pump/ rally is going strong again. It's only a matter of time before Wall Street destroys entire families and households again. Disgraceful.
Brad even CNN fact checkers laughed at Biden's State of the Union claims. He is projecting the biggest annual deficit this year (going to get much worse with the stimulus required from this) and there is zero chance he's getting the tax grab he wants in his next 2 years or beyond his term when he's resoundingly voted out.
Biden budget came out after the state of the union. You don't know what you are talking about.
wow you're slow... yes I said the budget was released last week, the CNN article relates to Biden's claims during the SOTU about his first 2 years.
The problem with SVB is that the CRO left in April of 22 and they let the risk fly in the face of rising rates. No president caused this or could of fixed this. Cant blame anyone but the bank and those who are suppose to check on how solvent the bank is period! Prove me wrong karen?
not wise to keep more dollars as foreign exchange reserves. countries to immediately start diversifying the portfolio to mitigate risk with dollar. Time has come to start cross border trading with their currencies. reduce dependency on single currency.their loopholes will spoil ur economy as well. ultimately, well-being of every citizen is the motto of every nation.
the risk to the dollar and most of the rest of the Western currencies is minimal compared to what we see with the ruble and the Chinese yuan......
And the miracle "in late trade" gets underway.  Criminally manipulated, predictable JOKE.
here we go again..
nothing to worry Market will close in green 🎉🎉🎉🎉
The big question: when are the algorithms going to kick in and we see another nonsense rally like yesterday?
inflation coming under expectations is nonsense rally ? great logic lol
tomorrow
If you're dump enough and only look yoy inflation it seems like it's going down. The critical and current is Core CPI mom which went up from last month. There's your nonsense.
SP 500 and Nasdaq will never see all time highs again. Gold will though.
"never see all time highs again"  --  Sure, if Trump's "good friend" Putin goes nuclear, all bets are off.
I thought putin was his master. please be consistent with your conspiracies
  What makes you think Putin can't go nuclear if he's Trump's master?  It just means Trump can't stop Putin; but Trump can and do praise/enable Putin.
America was superpower but Biden making America superpoor thank you so much Biden government🥰
Biden didn't ask Russia to invade Ukraine or weaponize energy export, or the CCP to shutdown cities.
someone who knows the facts 👏🏼👏🏼👏🏼
i posted a reply which was censored by the owner of the application
so much negative, the economy is fine. more jobs creates every month than even the fed wants. just a mater of time before the high speed trains leave the stations to the top of the mountain. broken carts will be left behind. select a train, pick a seat and ready for the joyful ride.
these banks brought this upon themselves. they got greedy and raised interest rate in loans and credit cards 3 times the increase in prime rate increase. so businesses and individuals started to dip into their savings. out goes the capital at accelerated pace that these banks cannot handle.
It's bad risk management by greedy inept senior bank management, enabled by Trump's deregulation that ties the regulators hands..
Bunch of woke Democrats on the bank board.
Zzzzzzzz. Johhny One Note singing his song.
Poorly managed banks and crypto is no reason to let up on inflation.
The rate hikes have only further exacerbated inflation as companies pass on the increased cost to consumers. They can do this because there is such limited supply of goods, demand is 10x. All the Fed has done has put the entire bond market under water and the bond market is WAY bigger than the stock market. Major systemic risk. But sure let's keep raising rates 🤡
Crypto had little to do with this crisis. Fact is $SI did not collapse, it wound down itself.
Ever notice there are about 5 BOTS that post on Reuters 24/7 and their job is to defend Biden and the American hating leftists. No matter when you come to tje Reuters news section they are posting their endless pro leftist rhetoric.
if you guys wet your pants when meeting differing opinions, maybe stick to breitbart and newsmax?
..if not, then stick around, and maybe you can learn something?
  If Will can't tell bots from human, maybe we should give him no credence for anything he spews.
Welcome to the Great Depression
We did for 2 quarters last year.
  Not every little decline in GDP is a recession.
  I said "We don't".  We're talking about the present.
Fractional Reserve Banking evil to the core, grab some popcorn and watch it fall 🎆
What's not to like about the Biden led disasters? Only the DNC BOTS defend him.
comments from a Russian bot calling himself William Smith...
Credit Suisse declare zero value of Gotam adani's co. related bond some time before on hidenberg report and presently his own account........
funny to watch the rightwing minions trying to spin this as anything but a deregulation failure.. my favourite so far is blaming it on the banks 'woke culture'.. how can you people even function and survive in daily life?
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