Stocks fall on Wall Street on renewed fears about banks

On Wall Street, companies in the oil and gas business also tumbled as the price of crude dropped more than 3 percent

Stocks are back to falling on Wall Street Wednesday as worries worsen about the strength of banks on both sides of the Atlantic.

The S&P 500 was 1.1% lower in early trading, while markets in Europe fell more sharply as shares of Switzerland’s Credit Suisse tumbled to a record low. The Dow Jones Industrial Average was down 418 points, or 1.3%, at 31,737 as of 9:45 a.m. Eastern time, while the Nasdaq composite was 0.8% lower.

Credit Suisse has been fighting troubles for years, including losses it took from the 2021 collapse of investment firm Archegos Capital. Its shares in Switzerland sank more than 28% following reports that its top shareholder won’t pump more money into its investment.

Wall Street’s harsh spotlight has intensified across the banking industry recently on worries about what may crack next following the second-and third-largest bank failures in U.S. history last week. Stocks of U.S. banks tumbled again Wednesday after enjoying a brief, one-day respite on Tuesday.

The heaviest losses were focused on smaller and midsize banks, which are seen as more at risk of having customers try to pull their money out en masse. First Republic Bank sank 15.1%, a day after soaring 27%. KeyCorp fell 9%, and Huntington Bancshares dropped 7.3%

Larger banks weren’t hit as hard but still fell. JPMorgan Chase slid 3.8%.