The Dow fell 500 points as bank panics spread

New York (CNN) The Dow opened Wednesday with a decline of more than 500 points as banking fears spread across the board Global marketsThe index pared losses to end the day down 281 points, or 0.9%.

The S&P and Nasdaq fell 2% and 1.5%, respectively, in the previous session. The S&P fell about 0.7%, while the Nasdaq posted a small gain for the day.

Stocks listed in New York (CS) Trapped Swiss lender Swiss debt It fell as much as 30% earlier in the day after its largest shareholder decided not to increase its funding, citing “material weakness” in its financial report on Tuesday and eliminating executive bonuses.

Shares of Credit Suisse were down about 24% in the end. Switzerland’s central bank said late Wednesday It was ready to provide financial assistance to Credit Suisse if needed.

Shares of US-based banks also fell: Wells Fargo (WFC) About 3.3% and closed JP Morgan Chase (JPM) The stock fell 4.7%.

After the collapse of Silicon Valley Bank and Signature Bank rocked markets last week and earlier this week, Wall Street continues to grapple with banking turmoil at home. While stocks recovered some of their losses on Tuesday, investors remained wary of the bank slump and the Federal Reserve’s interest rate hike campaign, as well as the overall stability of the financial sector.

CNN Fear and Greed Index It was at 22 on Wednesday morning and dropped to around 20 in the afternoon, indicating a lot of fear in the market.

Markets also digest recent economic data that gives insight into the level of inflation. The producer price index, a metric measuring the price paid for goods and services before businesses sell them to consumers, fell 4.6% in the 12 months ended February.

At the same time, US retail sales fell 0.4% last month, showing Americans spent less in February.

Both data points suggest that the central bank is making progress in its fight against inflation. The CME FedWatch tool shows traders see a 58.3% probability of a quarter-point rate hike at the Fed’s meeting next week.

On the heels of the collapse of Silicon Valley Bank, the biggest failure of a US bank since 2008, CNN is doing a special on the crisis and what it means for banks and their customers everywhere. Watch “Bank Bust: Next for America’s Money” tonight, March 15, at 9 p.m. ET.

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