US OPEN: Wall Street extends sell-off amid bank worries

• US indices launched today's cash trading sharply lower

• Retail sales fall slightly more than expected

• PPI fell unexpectedly

• Credit Suisse puts pressure on US banking sector

Three major Wall Street indices launched today's session sharply lower, with Dow Jones losing 1.50%, while S&P500 and Nasdaq fell by 1.40% and 1.0% respectively amid heightened concerns over the European and US banking system. Credit Suisse stock fell more than 25.0% during today's session after the lender's biggest backer, Saudi National Bank, ruled out more aid which raised worries that troubles that hit regional European banks have migrated across the Atlantic. Negative sentiment dragged down shares in medium and larger US lenders, including Well Fargo and Bank of America. Even the unexpected decline of PPI inflation in February failed to support buyers. Fresh data showed that headline and core inflation slowed more than expected in February. At the same time US retail sales fell 0.4% mom in February, compared to analysts estimates of 0.3% decline, and following an upwardly revised 3.2% surge in January which was the biggest gain since March of 2021. Swap prices show investors expect the US central bank to cut interest rates by as much as 120 bps by year-end from an expected peak in May.

Over 120 bps of rate-cuts now priced in for 2023.Bloomberg via ZeroHedge

S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5

US500 fell sharply early in the morning and once again is testing an earlier broken long-term downward trendline. If sellers managed to uphold current momentum, key support at 3800 pts may be at risk.. Source: xStation5

Company news: 

Shares of major US banks including Bank of America (BAC.US), Morgan Stanley (MS.US), Wells Fargo (WFC.US) fell around 4.0% in pre-market as concerns regarding  Credit Suisse financial condition put pressure  across the global banking sector. 

Bank of America (BAC.US) stock price broke below key support at $30.30, which is marked with previous price reactions and 61.8% Fibonacci retracement of the upward wave launched in March 2020. As long as price sits below the aforementioned level, downward move may deepen towards next support at $25.00 which coincides with 78.6% retracement. Source: xStation5

Smartsheet (SMAR.US) stock jumped over 12% before the opening bell after the software company issued better than expected quarterly guidance, while analysts’ expected a loss. At least eight brokers raised their price targets on the stock, with some saying its full-year revenue guidance looked conservative.

Lennar (LEN.US) stock rose over 1.0% in off-hours trading after the homebuilder posted better than expected financial results for the fiscal first quarter. Company earned $2.06 in earnings per share on $6.49 billion of revenue. Analysts surveyed by Refinitiv expected $1.55 in earnings per share on $5.93 billion of revenue.