Dow and S&P 500 in the red after credit suisse bailout news

March 16 (Reuters) – The U.S. Dow and S&P 500 fell on Thursday as Swiss central bank aid to crisis-hit Credit Suisse did little to improve sentiment among investors who waited for economic data to weigh on U.S. interest rate prospects.

Credit Suisse said on Thursday it would borrow $54 billion from the Swiss central bank to boost liquidity and investor confidence after the lender’s share price plunge fueled fears of a global banking crisis.

The focus today is on the meeting of the European Central Bank, which will be the first serious test of how officials will react to the growing concerns about the situation in the banking sector.

“Central banks are in a quandary because they have to control inflation. But now they face another problem – a crisis of confidence in the banking system,” said Andrea Ciccione of TS Lombard.

“People are rightly worried about the banks. We are in a situation that is very different from 2008 when we were dealing with interest rate risk.”

Dow futures fell 0.27% at 15:02 Moscow time, the S&P 500 fell 0.13%, the Nasdaq 100 rose 0.31%.

Adobe Inc shares supported Nasdaq futures, rising 5.8% after the Photoshop maker raised its profit target for 2023.

Facebook parent Meta Platforms and Snapchat operator Snap Inc rose 1.9% and 6.6%, respectively, after the Joe Biden administration threatened to ban TikTok.

Original message in English available at the code: (Shubham Batra and Amruta Khandekar in Bangalore, with Shristi Achar A)

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