US stocks trade mixed as Credit Suisse troubles stoke fears of a banking crisis
US stocks fell on Wednesday as fears of a banking crisis continued to rip through the market.
Troubles at Credit Suisse alarmed investors, sparking a steep sell-off in shares of the Swiss bank.
But the Swiss National Bank later said it will provide Credit Suisse with liquidity, if necessary.
US stocks recovered some losses to end mixed on Wednesday after Europe added to banking crisis fears that have been ripping through the market.
US-listed shares of Credit Suisse plummeted 22%, hitting a new all-time low in intraday trading. Investors were rattled by news that the bank's biggest backer, Saudi National Bank, would not provide additional capital.
But the Swiss National Bank later said it will provide Credit Suisse with liquidity, if necessary, adding that it "meets the capital and liquidity requirements imposed on systemically important banks."
Treasury yields continued to fall as investors dialed back expectations of Fed rate hikes. The yield on the 2-year Treasury sank 30 basis-points to 3.925%, extending its fall after notching a three-day record decline on Monday.
Here's where US indexes stood at the 4:00 p.m. ET close on Wednesday:
S&P 500: 3,891.99, down 0.70%
Dow Jones Industrial Average: 31,874.77, down 0.87% (280.63 points)
Nasdaq Composite: 11,434.05, up 0.05%
Here's what else is going on:
"Big Short" investor Michael Burry called out ESG funds that bet on Silicon Valley Bank before its implosion.
Stocks could tumble further if the Fed pauses its rate hikes, since that means other banks are going to collapse, DataTrek said.
The Fed's interest rate moves likely cost US banks around $900 billion, Fundstrat estimated.
Elon Musk said there are similarities between Silicon Valley Bank and the 1929 market crash.
The US banking system could face more seizures and shutdowns after SVB's collapse, BlackRock's Larry Fink warned.
In commodities, bonds, and crypto:
Oil prices traded fell, with West Texas Intermediate down 4.04% to $68.43 a barrel. Brent crude, the international benchmark, dropped 3.7% to $74.62 a barrel.
Gold rose 1.56% to $1,933.86 per ounce.
The 10-year yield sank 14 basis points to 3.492%.
Bitcoin slipped 0.63% to $24,459.54.
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