SP500 is under strong pressure as traders focus on the potential problems of the European banks that could lead to a banking crisis in Europe.
Shares of Credit Suisse dived 25% amid bankruptcy fears. The bank’s top shareholder ruled out providing more cash to the troubled financial institution.
In the U.S., First Republic Bank, which was down by 23%, was the worst performer in the SP500 as traders bet that regional banks could face more problems after the collapse of Silicon Valley Bank.
Energy stocks led the sell-off in the SP500 as traders reacted to the major sell-off in the oil markets. Currently, WTI oil is trading near the $66 level. Halliburton, Marathon Oil, and APA Corporation were down by 9-11% in today’s trading session.
From a technical point of view, SP500 is trying to settle below the 3850 level. In case this attempt is successful, SP500 will move towards the recent lows near the 3800 level.
Dow Jones tested new lows as the pullback continued. RSI is close to the oversold territory, but there is enough room to gain additional downside momentum if regulators fail to calm financial markets.
Boeing and Caterpillar, which were down by roughly 6% today, were the biggest losers in the Dow Jones index today. JPMorgan Chase and Goldman Sachs dropped 5% amid fears of a broader contagion in the financial sector.
For a look at all of today’s economic events, check out our economic calendar.