XLF - S&P Nasdaq Dow futures slump yields dive as Deutsche Bank reignites bank fears

2023-03-24 06:40:01 ET

Stock index futures went from little changed to firmly lower after selling pressure ramped up on Deutsche Bank.

Nasdaq 100 futures ( NDX:IND ) -0.5% , S&P futures ( SPX ) -0.8% and Dow futures ( INDU ) -0.9% were down, but off their lows.

Financials ( XLF ) dropped 1.6% premarket.

Deutsche Bank ( DB ) fell 12% in Frankfurt (after two previous down sessions) as the cost of insuring against default spiked .

Treasury yields tumbled, mirroring European government yields, as cash flowed to safety. The 10-year Treasury yield ( US10Y ) fell 11% to 3.30%. The 2-year yield ( US2Y ) plunged 22 basis points to 3.59%

The 10-year German bund yield lost 17 basis points to 2.03%.

The chance of no Fed hike at the May meeting rose to 76%, according to fed funds futures. The chance of a quarter-point rate cut in June jumped sharply to 76% from 30% Thursday.

The major averages had been on track for weekly gains. Going into Friday trading the S&P ( SP500 ) is up 0.9%, the Nasdaq ( COMP.IND ) is up 1.4% and the Dow ( DJI ) is up 0.8%.

On the economic calendar February durable goods figures arrive before the bell. The consensus is for a rise of 0.6%, with core orders rising 0.2%.

More on the Bank Crisis

• Moody's warns on spillover risk; banks continue emergency borrowing
• UBS Swallows Credit Suisse: More Holes Than Cheese
• EU regulators to focus on liquidity rules after Credit Suisse debacle
• UBS Acquisition Of Credit Suisse: Deal Of The Century

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