U.S. stocks were touching fresh session lows in early afternoon trade Wednesday as shares of Swiss banking giant Credit Suisse tumbled to a record low. The Dow Jones Industrial Average was off 721 points, or 2.2%, near 31,434, while the S&P 500 index shed 2% and the Nasdaq Composite Index was down 1.5%.
“With the Credit Suisse situation, the market is looking at the possibility of an extension of the banking crisis,” said Peter Cardillo, chief market economist at Spartan Capital Securities, pointing to pressures on shares of U.S. regional banks.
Read: Regional and big bank stocks choppy amid rising fears of banking crisis
Bloomberg reported on Wednesday that a key Credit Suisse (CSGN.EB) shareholder ruled out adding to its stake in the lender.
Cardillo said investors were fleeing stocks for traditional haven assets on Wednesday, pointing to gold prices rising 1.5%, the U.S. dollar’s 1.3% gain against a basket of rival currencies and tumbling yields in the $24 trillion Treasury market.
The 10-year Treasury rate was down about 23 basis points on Monday to 3.4%, on pace for its biggest daily drop since November, after it shot up to 4% last week.
Investors also were focus on if market turmoil could force the Federal Reserve to pause rate hikes.
-Joy Wiltermuth
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03-15-23 1258ET
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