Sharply lower futures amid concerns about a crisis in the banking sector point to a weak start for U.S. stocks on Wednesday.
Following the collapse of Silicon Valley Bank and Signature Bank in the U.S., reports about Swiss banking giant Credit Suisse’s short-term debt woes are likely to hurt sentiment.
The Dow futures are down 1.72 percent. The S&P futures are down 1.77 percent, while the Nasdaq futures are lower by 1.5 percent.
On the economic front, data on retail sales for the month of February, producer prices, and a reading on NY Empire State Manufacturing Index are due at 8:30 AM ET.
The NAHB Housing Market Index score is due at 10:30 AM ET.
U.S. stocks rallied on Tuesday, bouncing back from recent losses, thanks to hectic bargain hunting, particularly in the banking sector.
The assurance from the regulators that there won’t be a relapse of the financial crisis from 15 years ago helped lift sentiment.
Data showing a drop in U.S. consumer prices in the month of February contributed significantly to the positive mood in the market.
The major averages all ended on the positive side. The Dow ended with a gain of 336.26 points or 1.06 percent at 32,155.40, snapping a five-day losing streak. The index scaled a high of 32,306.59 and a low of 31,805.40 intraday.
Asian stocks closed higher on Wednesday as data showing a recovery in China’s economic activity helped outweigh concerns about U.S. bank contagion fears.
Data from the National Bureau of Statistics showed China’s industrial production and retail sales expanded in the January to February period. Industrial output grew 2.4 percent on a yearly basis in January to February period, faster than the 1.3 percent increase posted in December.
European stocks are plunging sharply with investors keeping a close eye on the developments surrounding the SVB crisis, and the debt woes of Swiss bank Credit Suisse following Saudi National Bank saying it would not be able to offer more financial help.
Credit Suisse, BNP Paribas, Commerzbank, Societe Generale and Deutsche Bank, all suffered sharp losses this morning.
In commodities trading, West Texas Intermediate Crude oil futures are down $1.11 or 1.56 percent at $70.22 a barrel.
Weekly crude inventory data from U.S. Energy Information Administration (EIA) is due at 10:30 AM ET.
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