Share prices fell sharply Wednesday morning at the start of trading on the New York Stock Exchange on concerns about the strength of banks in the United States and Europe.
The S&P 500 Index was down 1.5% in the morning, with 90% of its stocks down. The Dow Jones industrial average fell 482 units (1.5%) to settle at 31,672, while the Nasdaq technology fell 1.2%.
In Europe, markets fell further and shares of Swiss bank Credit Suisse fell to record lows.
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Credit Suisse has struggled for years, including losses from the 2021 collapse of investment firm Archegos Capital. Its shares fell more than 22% after reports that its main shareholder will no longer invest there.
The troubles on Wall Street have intensified amid fears of what will happen after the second and third largest banking collapses in US history. US bank shares plunged again on Wednesday after swinging on Tuesday.
The biggest losses were registered in medium and small banks, considered vulnerable to suffering a massive withdrawal of deposits.
First Republic Bank fell 7.7%, the day after rising 27%. Huntington Bancshares lost 5.7%
The largest banks did not suffer such losses, but they still fell. JPMorgan Chase was down 3.6%.
The yield on the 10-year US Treasury bond fell from 3.69% to 3.41%. That figure is used as the basis for setting mortgage rates and other types of loans.
European markets plunged due to weakness in the banking sector. France’s CAC 40 index fell 3.5%, Germany’s DAX index lost 3% and Britain’s FTSE 100 index fell 3.1%.
On Wall Street, the oil and gas sector fell as the price of crude oil fell more than 3%.
