Sell-Off Triggered as Dow Jones Drops 400 Points, Credit Suisse Suffers Record All-Time Low with Over 20% Decline.

Reporters reported that The Dow tumbled more than 400 points, while banking stocks were pressured by a slump in Credit Suisse stocks.

As of 8:43 p.m. local time, the Dow Jones Industrial Average was 31,709.58 points, down 445.82 points or 1.39%, as bank stocks tumbled in trading today.

Shares of Credit Suisse, traded on the New York Stock Exchange, tumbled 24 percent to $1.90 amid concerns about the bank’s financial health. It sank to a record low in trading on European stock markets. before being ordered to suspend trading

Investors sold off Credit Suisse stocks after Credit Suisse’s largest shareholder, the Saudi National Bank (SNB), announced it was unable to increase its financial support. against Credit Suisse because it would allow SNB to own more than 10% of Credit Suisse, which would violate banking regulations.

Previously, Credit Suisse revealed that The bank posted a net loss of CHF 1.4 billion in the fourth quarter of 2022, beating analysts’ expectations of CHF 1.32 billion. This resulted in a loss for the full year of CHF 7.3 billion.

In addition, customers flocked to deposits of more than CHF 110 billion in the fourth quarter of 2022 amid concerns over the bank’s regulatory scandal. and the risk of prosecution.

The Dow Jones Industrial Average closed more than 300 points higher yesterday after the US released its consumer price index (CPI) for February, in line with analysts’ expectations. and a slowdown from January It indicates that inflation has passed its peak. And will be a factor supporting the Federal Reserve (Fed) to slow down the rate hike.

In addition, investors responded to measures taken by the US authorities to protect deposits. and establishing a “Bank Term Funding Program” to prevent the Silicon Valley Bank (SVB) crisis from spreading to other financial institutions

however Moody’s Investors Service United States Credit Rating Agency Announced to downgrade the credit rating of the US banking system from “stable” to “negative”, warning that although the US authorities issued measures to contain the SVB crisis, other banks with unrealized losses or depositors who do not receive deposit guarantees will continue to face risks

As for the disclosure of economic numbers today The U.S. Department of Labor releases the Producer Price Index (PPI), a gauge of inflation on producer spending. February month today

The headline PPI, which includes food and energy, rose 4.6 percent in February year on year. The headline PPI fell 0.1% in February, beating analysts’ expectations for a 0.3% gain after gaining 0.3% in January. C.

The core PPI, which excludes food and energy, rose 4.4% in February year on year. In line with January month-on-month, the core PPI rose 0.2% in February, slowing from 0.5% in January.

The US Commerce Department said Retail sales fell 0.4% in February, while analysts had expected a 0.3% drop after surging 3.2% in January. of car sales

Basic retail sales Sales of cars, gasoline, construction materials and food, which excluded vehicles, rose 0.5 percent in February after gaining 2.3 percent in January.