US stock futures fell on Wednesday, March 15, after Credit Suisse Group AG’s top shareholder, Saudi National Bank, ruled out investing any more in the troubled Swiss bank.

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Dow futures fell 1.7 percent or over 400 points, S&P 500 futures slipped 1.8 percent, and Nasdaq 100 futures were down 1.6 percent.

Shares of large US banks were under pressure in premarket trading as traders monitored Credit Suisse’s struggles, reported CNBC. Shares of Wells Fargo and Citi fell about 4 percent each, while Bank of America dipped 3 percent. JP Morgan and Goldman Sachs shed about 2 percent.

London and Frankfurt declined, while Shanghai and Tokyo closed higher. Oil prices rose by $1 per barrel, recovering some of the previous day's losses.

In early trading, London's FTSE 100 lost 0.6 percent to 7,591.73. The DAX in Frankfurt retreated 0.3 percent to 15,188.30 and the CAC 40 in Paris declined 0.7 percent to 7,094.06.

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Further, investors fear the US Fed might respond to enduring upward pressure on prices by speeding up the pace of interest rate increases to dampen economic activity and inflation.

Those jitters were overshadowed by anxiety about the US financial system following the collapse of Silicon Valley Bank on Friday (March 10) and Signature Bank on Sunday (March 12). President Joe Biden and the regulators have tried to assure the public that risks are contained and deposits in other banks are safe.

The yield on a two-year Treasury Bills, or the difference between the market price and the payout at maturity, climbed back to 4.21 percent from 4.02 percent late Monday, March 13, another huge move. The yield on the 10-year T-Bills jumped to 3.66 percent from 3.55 percent.

In energy markets, benchmark US crude rose $1.03 to $72.36 per barrel in electronic trading on the New York Mercantile Exchange. The contract plunged $3.47 on Tuesday, March 14, to $71.33. Brent crude, the price basis for international oil trading, advanced $1.08 to $78.53 per barrel in London.

(With inputs from Reuters)

(Edited by : Shoma Bhattacharjee)

First Published:Mar 15, 2023 5:46 PM IST