US indices are falling amid problems with Credit Suisse
Any negative signal from a major bank will cause a ripple effect across the financial sector
Shares of US banks and companies are falling on Wednesday as the collapse of Swiss bank Credit Suisse's securities has heightened fears of a banking crisis.
Source. It is reported by Reuters.
Shares of Credit Suisse traded in the United States fell by 17.5% after the bank's largest investor said it could not provide the lender with the necessary financial assistance.
Earlier, statistics showing that US retail sales in February fell by 0.4% compared to the previous month reinforced expectations of a softer Fed policy.
At the same time, the US producer price index in February rose by 4.6% year-on-year, against expectations of a 5.4% increase.
The bankruptcy of the US regional banks SVB and Signature Bank over the weekend has already raised concerns about the welfare of the entire financial sector, fueling hopes that the Fed will avoid a sharp rate hike.
Shares of major US banks, such as JPMorgan Chase & Co, Citigroup and Bank of America Corp. are losing between 2.5% and 4.6%.
"Any negative signal from any institution that is in the spotlight, in this case Credit Suisse, will cause a ripple effect across the financial sector," said Michael James of Wedbush Securities.
As of 17:42 Moscow time, the Dow Jones index was down 1.86% to 31,558.51 points, the S&P 500 index was down 1.75% to 3,850.85 points, and the Nasdaq was down 1.45% to 11,262.28 points.
Background. As reported, the Swiss bank Credit Suisse continues to lose capitalization due to new problems – on Wednesday, its quotes fell by 30%.
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