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Investing.com — U.S. stocks tumbled as Credit Suisse raised fresh concerns about the banking system.
At 10:40 ET (13:48 GMT), the Dow Jones Industrial Average was down 575 points or 1.8%, while the S&P 500 was down 1.7% and the NASDAQ Composite was down 1.4%.
Credit Suisse Group (NYSE:CS) stock plunged 15.8% 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. The stock has come off its lows of the morning.
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 half are betting there won’t be an interest rate move next week, while half 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 13.9%, while shares of PacWest Bancorp (NASDAQ:PACW) slid 11%.
Big banks were also falling, such as JPMorgan Chase & Co (NYSE:JPM), down 4.6%, and Bank of America Corp (NYSE:BAC), down 2.4%.
Oil fell. Crude Oil WTI Futures were down 4.2% to $68.30 a barrel, while Brent Oil Futures crude was down 4% to $74.36 a barrel. Gold Futures were up 0.8% to $1,927.
