Dow futures down 600 points as several Euro banks halt trading after losses, SVB collapse
The losses come after the collapses of Silicon Valley Bank in California and Signature Bank in New York over the weekend.
Dow futures are down over 600 points in premarket trading Wednesday as several European banking stocks have halted trade due to steep losses in the aftermath of two U.S. banks collapsing in the past several days.
The U.S. stock futures fell sharply shortly before midnight Tuesday, with Dow futures eventually falling by over 500 points, or about 1.7%, by Wednesday morning at 8:00 a.m. ET, according to Google Finance.
The S&P 500 and the NASDAQ, both major indexes that are smaller than the Dow, are also down in premarket trading by at least 1.3%.
The lower stock futures come amid steep banking losses in the European market. The trade of Credit Suisse, Societe Generale and multiple Italian bank stocks was halted due to the losses, CNBC reported.
Problem at Credit Suisse are in large part the result of its largest investor saying it could not provide the Swiss bank with more financial assistance – sending its shares and broader European shares sliding again.
Meanwhile, the U.S. Consumer Price Index released Tuesday shows that inflation remains stubbornly high at 6% as the Federal Reserve bank raises interest rates in an effort to cool price hikes.