U.S. stock futures ticked up Wednesday night after investor fears of a widespread banking crisis led to a volatile trading session.
Dow Jones Industrial Average futures were up just 2 points, or 0.01%. Meanwhile, S&P 500 futures rose 0.10% and Nasdaq 100 futures climbed 0.33%.
During the regular trading session, the Dow at one point fell 725 points before ending the day down by 280.83 points, or 0.87% lower. The S&P 500 dropped 0.7%, and the tech-heavy Nasdaq Composite edged 0.05% higher.
The major averages had a rocky start in the morning following news that Credit Suisse’s largest investor, the Saudi National Bank, said that it could not provide additional funding for the bank. The announcement from SNB sparked a broad selloff over fears of a crisis in the financial sector. The indexes regained some ground in the afternoon after an announcement from a Swiss regulator stated that the Swiss National Bank would provide additional liquidity to Credit Suisse if necessary.
“It’s no doubt changing the landscape of how we as investors look at the investability of financial institutions that fit in the banking sector,” said Keith Buchanan, portfolio manager at GLOBALT Investments. “It also makes us ponder just how the sector would navigate with, in the future, more forms of regulatory pressure on these corporations.”
Buchanan continued, “There’s a race again for safe havens, particularly U.S. Treasuries. And you know, there’s a notion now, on a mixed note at that the Federal Reserve meeting next week, [they’ll] have perhaps have [a] less hawkish tilt to their action and rhetoric.”
Traders will keep an eye out for key economic data, including the latest jobless claims report. Housing starts data from the U.S. Census Bureau is also out at 8:30 a.m. ET.
Dollar General and Jabil are set to report earnings on Thursday before the bell. FedEx will be announcing its earnings upon market close.