U.S. stocks and futures edged lower on Wednesday as Credit Suisse Group AG faces its own debt crisis. This comes after a week of distress for investors amid regional bank failures, headlined by the collapse of Silicon Valley Bank last Friday.
Credit Suisse shares plummeted by as much as 21% following the top shareholder’s decision to refrain from further assistance. This comes as the global investment banking company’s short-term debt fast approaches distressed levels.
Following news of Credit Suisse’s debt crisis, S&P 500 futures declined by almost 2%, thereby indicating that Tuesday’s rebound would not persist as regional banking failures continue to hamper market confidence. Contracts on the Nasdaq 100 declined 1.6%, while those listed on the Dow Jones Industrial Average fell 1.8%. European stocks also fell on Tuesday, with the Stoxx Europe 600 plunging 2.9%.
The 10-year Treasury yield declined by 12 basis points on Tuesday, while Britain’s and Germany’s 10-year yields declined by nine and 15 basis points respectively, arriving at 3.40% and 2.26%.
In commodities, gold futures remained little changed while West Texas Intermediate crude declined 2.1% to $69.85 per barrel. The Bloomberg Dollar Index rose by 0.7%, while the euro weakened by 1% against the dollar to $1.0627. The sterling also fell 0.7% to $1.2069.
