Highlights
Stocks scratched back from steep midday losses to end moderately weaker Wednesday. The market drew late support from a recovery in bank stocks after an after-hours statement from the Swiss National Bank saying embattled Credit Suisse meets capital and liquidity requirements, and the SNB would provide liquidity as needed.
The Dow Jones industrial average declined 0.9 percent, the S&P 500 lost 0.7 percent, and the NASDAQ eked out a gain of 0.1 percent. Earlier, the major indexes were down 2 to 3 percent. US Treasury yields rose but ended well down from earlier levels. The dollar was mixed while oil prices extended their nasty selloff.
Losses in Credit Suisse weighed on European bank stocks early, and US banks came under renewed selling pressure Wednesday morning after bouncing back Tuesday after US regulators acted to bolster banks facing liquidity trouble. US banks were also hurt by reports that regulators are weighing tougher capital requirements for mid-sized banks in the wake of trouble at Silicon Valley Bank and others.
Among sectors, energy was a big loser as oil prices continued to plunge on concerns over slowing global demand. Sectors were mixed with financials, materials, industrials and consumer discretionary lagging and consumer staples, utilities, and communications services holding up relatively well.
The Dow Jones industrial average declined 0.9 percent, the S&P 500 lost 0.7 percent, and the NASDAQ eked out a gain of 0.1 percent. Earlier, the major indexes were down 2 to 3 percent. US Treasury yields rose but ended well down from earlier levels. The dollar was mixed while oil prices extended their nasty selloff.
Losses in Credit Suisse weighed on European bank stocks early, and US banks came under renewed selling pressure Wednesday morning after bouncing back Tuesday after US regulators acted to bolster banks facing liquidity trouble. US banks were also hurt by reports that regulators are weighing tougher capital requirements for mid-sized banks in the wake of trouble at Silicon Valley Bank and others.
Among sectors, energy was a big loser as oil prices continued to plunge on concerns over slowing global demand. Sectors were mixed with financials, materials, industrials and consumer discretionary lagging and consumer staples, utilities, and communications services holding up relatively well.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
