Dow tumbles over 300 points as Deutsche Bank jitters reignite Europe's banking concerns

(Photo by Johannes EISELE / AFP) (Photo by JOHANNES EISELE/AFP via Getty Images)
  • US equities futures slipped into the red Friday as fears over the US banking turmoil continue to rattle investors.

  • Dow futures lost 1.05% points, while the S&P 500 and Nasdaq shed 0.88% and 0.54%, respectively.

  • Fears over the financial health of European banks are also mounting, with Deutsche Bank shares slumping following a spike in credit default swaps.

US stock futures fell Friday as investors shifted their focus from the Federal Reserve's interest-rate decision back to the lingering banking-sector instability.

Dow Jones Industrial Average futures were down 340 points, or 1.05%, as of 8:00 a.m. ET. S&P 500 futures fell 0.88%, while Nasdaq 100 futures lost 0.54%.

The losses follow a volatile trading session on Thursday as investors digested the Fed's latest interest-rate hike and fresh concerns over the banking turmoil that started two weeks ago with the collapses of Silicon Valley Bank and Signature Bank, before spreading to Europe with the rescue deal for Credit Suisse.

The US central bank hiked interest rates by 25 basis points on Wednesday, representing its 9th consecutive interest rate hike since it started the tightening policy in March 2022, and Chairman Jerome Powell signaled that further increases could be necessary.

The drop in US equity futures also comes amid renewed jitters over the financial health of European lenders, with Deutsche Bank shares slumping 14% in premarket trading following a sharp jump in the cost of insuring its bonds against the risk of default.

In European equity markets, the pan-contential Stoxx 600 index was down 1.8% at last check Friday. The DAX in Frankfurt lost 2.4%, while the CAC 40 in Paris dropped 2.3%.

In commodities, currencies, bonds and crypto:

  • West Texas Intermediate crude oil futures fell 3.9% to $67.18 per barrel. Brent crude, oil's international benchmark, slipped 3.7% to $72.73.

  • The yield on the 10-year Treasury sank 12 basis points to 3.29%.

  • Bitcoin dropped 1% in the past hour to $27,764, while ether slipped 1.5%% to $1,764.

  • The US dollar index was up 0.67% to $103.23.

    This story was updated at 8:05 a.m. ET to reflect price moves.

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