Wall Street down as Credit Suisse sparks fresh bank selloff

US stocks gave up slight gains, trimming losses late on Wednesday.

The Dow and S&P 500 closed lower still as Credit Suisse's problems revived fears of a banking crisis.

“We are seeing headline momentum, but not serious headline momentum, which is good,” said Co-Manager of Themis Trading in a statement.

Some investors say that aggressive US interest rate hikes by the Federal Reserve caused cracks in the financial system.

Adams Funds CEO said "Financial stocks, banks bounced back yesterday, but a major factor here is loss of confidence and it's really fear of the unknown."

US retail sales rose 3.2% in January but fell 0.4% last month.

US Treasury yields fell, with traders now anticipating a 25-basis-point rate hike.

According to Jeffrey Carbone, Managing Partner at Cornerstone Wealth “In the financial markets, you only have to look at the people that can go bad”.

Trading was halted multiple times due to volatility, a day after a strong recovery in shares of battered banks.

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