When one of the largest banks in Europe, Credit Suisse Group (NYSE: CS) has funding issues, it is going to be an ugly day on Wall Street. While the bank has been on the brink of disaster for months/years, the withdrawal of Saudi backing ushered in a new chapter in the saga.
The damage done to the S&P futures index during premarket trading was lessened by the price action during the regular session. While the index began the regular session in the red by over 60 handles, the index battled back to end the session being down only 29.25 handles at a closing price of 3925.
For now, the bulls have defended Monday’s low (3939.50), which came just under the previous low for the year (3949.25) for the second day in a row. The question remains whether or not the bulls can maneuver the index over the brick wall of resistance at the 3970 area and soon.
The biggest winner of the top components of the index was Alphabet Inc. (NASDAQ: GOOG). For the session, the issue added $2.30 at closing price of $96.55 or 2.4%.
That is over three percent better than the cash index’s decline of 0.74%.
JP Morgan Chase & Co. (NYSE: JPM) was the biggest loser by a wide margin. For the session, the issue swooned $6.26 or 4.65%.