During the banking crisis, U.S. stock futures fell to low levels
Investors assessed the resilience of the global banking system as U.S. stock futures remained low following the Swiss government’s compelled acquisition of Credit Suisse by UBS. This is a significant step governments take to avoid a banking sector crisis.
- Dow Jones Industrial Average futures declined 8 points or 0.033%
- S&P 500 futures retreated 0.05%
- Nasdaq-100 futures fell 0.05%
Regional banks were once again under pressure to increase their deposit base after the collapse of Silicon Valley Bank earlier in the month.
The Federal Reserve has raised bets about the interest rate due to the recent financial crisis. CME Group data, which uses Fed futures contract data, shows that there is a 56.7% chance that the Fed will increase the rate by quarter point in the morning. The rest of the 37.6% are bearish and expect that Chairman Jerome Powell will begin to relax his aggressive moves which began in spring 2022.
UBS agreed to purchase Credit Suisse for 3 Billion Swiss Francs. This would combine the $5 Trillion in assets. Credit Suisse shares fell 20.3% last week. UBS announced that it…