Dow falls as banking crisis deepens — RT Business News

The index that tracks 30 blue-chip US stocks fell more than 600 points on Wednesday

U.S. stocks opened trading on Wednesday with a steep decline as Wall Street continues to grapple with ongoing banking turmoil.

The Dow Jones Industrial Average slipped more than 600 points, down 1.6%. The S&P 500 fell 1.8%, while the tech-heavy Nasdaq was down 1.5%.

The pressure on the struggling financial sector has increased after the main shareholder of Swiss banking giant Credit Suisse decided not to increase funding. Shares of the Swiss lender, which has significant operations in the United States and around the world, fell nearly 25% on the news.

Shares of US banks also fell, with Citigroup and Wells Fargo down 5%. Shares of JPMorgan Chase fell 3.6%, while Goldman Sachs and Bank of America fell about 4% and 3%, respectively.

Credit Suisse’s largest investor, Saudi National Bank, reportedly announced on Wednesday that it could no longer provide financing after the bank found material weaknesses in its financial reports.

The Swiss lender is currently trying to recover from a series of scandals that have shaken the confidence of investors and customers, and billions in losses. Customer outflows in the fourth quarter totaled more than 110 billion Swiss francs ($120 billion).

The bank’s share price fell to record lows this week amid broader market turmoil triggered by the collapse of several U.S. tech lenders.

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