Market Sinks as Credit Suisse, Banks in Europe Worry Investors

On Wednesday, U.S. stock futures dropped amid worries related to Credit Suisse and banks in Europe.[0] The Dow Jones Industrial Average (^DJI) fell 1.7% or more than 500 points, the S&P 500 (^GSPC) slumped 1.5%, and the Nasdaq Composite (^IXIC) slid 1.8%.[1]

The S&P 500 (^GSPC), Dow Jones Industrial Average (^DJI) and Nasdaq Composite (^IXIC) all had their worst weeks since at least November, as fears of a growing financial crisis deepened with the recent collapse of Silicon Valley Bank. INDU futures decreased by 1.7%, the SPX futures dropped by 1.8%, and NDX:IND futures declined by 1.6%.[2]

The yield on the 10-year Treasury note decreased by 12 basis points to 3.51%. Bond yields also declined, with the yield on the 10-year U.S. Treasury note moving down to 3.68% Friday. The U.S. 10-year Treasury yield (US10Y) decreased by 6 basis points to 3.58%, and the 2-year yield (US2Y) decreased by 5 basis points to 4.17%.

Retail sales fell 0.4% over the last month and producer-price index, which measures what suppliers are charging businesses, dropped 0.1% in an unexpected decline.[3]

Meta Platforms (META) announced Tuesday it would cut another 10,000 jobs in the coming months.[4] Credit Suisse (CS) stock dived 25% in premarket trading as Saudi National Bank, its top shareholder, ruled out any further investments.[5]

Gold futures rose 1% to $1,929.90 an ounce, while EUR/USD dipped by 1.26% to 1.0599.[6]

The Federal Reserve will announce its March decision next week, with investors debating whether a 0.25% or 0.50% rate hike is likely.[7]

Investors should be aware of the risks associated with foreign exchange trading and seek advice from an independent financial or tax advisor if they have any questions.[8]

0. “Dow, S&P, Nasdaq futures lower after Tuesday’s rebound, yields dip” Seeking Alpha, 15 Mar. 2023, https://seekingalpha.com/news/3947530-dow-sp-nasdaq-futures-yields-banking

1. “Market Update: Stocks Slightly Lower Despite Banks – Ticker Tape” The Ticker Tape, 13 Mar. 2023, https://tickertape.tdameritrade.com/market-news/market-update-stocks-slightly-lower-despite-banks-19416

2. “Dow Jones futures fall 600 points following international bank shares’ sharp decline” Washington Examiner, 15 Mar. 2023, https://www.washingtonexaminer.com/policy/economy/dow-jones-futures-fall-international-bank-shares-decline

3. “Stock market news today: Stocks plummet, yields fall amid Credit Suisse turmoil” Yahoo News, 15 Mar. 2023, https://news.yahoo.com/stock-market-news-today-live-updates-march-15-2023-114153589.html

4. “Dow Jones Futures Fall 500 Points As Credit Suisse Triggers European Bank Sell-Off | Investor’s Business Daily” Investor’s Business Daily, 15 Mar. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-fall-as-credit-suisse-triggers-european-bank-sell-off/

5. “Big Four US banks drop in pre-market wiping out gains as Credit Suisse shares plunge” Daily Mail, 15 Mar. 2023, https://www.dailymail.co.uk/news/article-11862725/Credit-Suisses-biggest-backer-says-cash-share-fifth.html

6. “Wall Street Frets Over Bank ‘Dominoes’ in Wild Day: Markets Wrap” Yahoo News, 15 Mar. 2023, https://news.yahoo.com/asian-shares-set-climb-banking-221157909.html

7. “Stock market news today: Stocks smoked after jobs beat and SVB collapses” Yahoo News, 10 Mar. 2023, https://news.yahoo.com/stock-market-news-today-live-updates-march-10-2023-123845899.html

8. “S&P 500 Dives as Banking Stress Triggers Market Tremors, Dollar Up on Haven Demand” DailyFX, 15 Mar. 2023, https://www.dailyfx.com/news/spx-sp-500-dives-as-banking-stress-triggers-market-tremors-forex-dollar-up-on-haven-demands-20230315.html