Traders Dash for Cover as Bank Drama Rattles Globe: Markets Wrap

Volatility gripped global markets as fresh turmoil at Credit Suisse Group AG days after the collapse of some American regional banks spurred a frantic rush for safety, evoking memories of the 2008 financial crisis and bolstering speculation that policymakers will have to curb their hawkishness to prevent a harsher economic landing.

Equities got some relief after Switzerland’s central bank and financial regulator said Credit Suisse will receive a liquidity backstop if needed — an effort to arrest the slump in confidence around the troubled lender. The S&P 500 pared a slide that topped 2% by more than half. A gauge of US financial heavyweights like JPMorgan Chase & Co. and Citigroup Inc. also trimmed losses, but still hit the lowest since November 2020. First Republic Bank led a rout in US regional peers after being cut to junk by two credit firms.