Stock market tumbles over dual Credit Suisse and Silicon Valley Bank crises

THe stock market The dual bank crises of Wednesday and Thursday caused the collapse of the economy. Credit Suisse Silicon Valley Bank.

Both the Dow Jones and S&P 500 ended in red, ending a stressful day in finance. Major United States Banks continued to suffer; Wells Fargo shares fell 3.2%, JPMorgan Chase stock fell 4.7%, Dow fell 0.87% and S&P 500 dropped about 0.7%. According to CNN.

CREDIT SUISSE BANK SWISS BANK OVER $50B AFTER SHARES CRASH BY NEARLY ONE THRID

Fears among investors resulting in SVB’s failure contributed panic surrounding Credit Suisse. Credit Suisse stock prices plummeted 30% on Wednesday after its largest shareholder announced that it would not give it any more money. The day was over. Credit Suisse was required to borrow $53.7 million The Swiss National Bank offered assistance just hours after it had been asked.

“Credit Suisse meets the capital and liquidity requirements imposed on systemically important banks. If necessary, the SNB will provide CS with liquidity,” Statement jointly issued by the Swiss Financial Market Supervisory Authority, and the Swiss National Bank .

Wednesday was the bank’s worst day, having been in crisis for many years because of a series of scandals. Wednesday’s disaster was precipitated by a televised interview with Ammar Al Khudairy, the chairman of Saudi National Bank. According to The New York Times. He said that Credit Suisse would not be receiving any more money from the bank during the interview. This caused panic among investors.

Global consequences could be wrought by Wednesday’s Credit Suisse plunge. The assets of the bank are estimated to be $573 billion.

“[Credit Suisse] is much more globally interconnected, with multiple subsidiaries outside Switzerland including in the US,” Andrew Kenningham, chief Europe economist at Capital Economics, Telled CNN. “Credit Suisse is not just a Swiss problem but a global one.”

First Republic Bank was another bank that was hard hit. Their rate was Reduced to junk status Standard and Poor’s went from A- to B+ amid greater fears about the SVB collapse. Within an hour of trading opening, shares dropped by 15% and the company’s stock prices plummeted.

Alarmingly, the Chicago Board Options Exchange Volatility Index (also known as the “fear index,” The morning rose by close to 14%

Even though the stock market was showing a poor performance, analysts such as Larry Summers, former Treasury Secretary, warned against panicking.

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“I don’t think this is a time for panic or alarm,” CNN was informed by him. “This is not 2008, where people needed to be worried about where they could get their money … It absolutely is not that.”

“Americans’ money is safe,” He added.