Credit jitters sent stocks reeling across the globe and propelled gold to a new all-time high of $4,378 an ounce. The market anxiety was sparked by signs of stress at two US regional banks.
Zions Bancorporation and Western Alliance reported significant bad loans, raising questions about wider issues in the private credit market. Their shares plunged, and the fear spread to international markets.
European indices like the FTSE 100 and Germany’s Dax fell over 1%. The banking sector was hammered, with €37.4 billion wiped from European lenders. Asian markets also posted significant losses.
The VIX “fear index” surged over 22%, its highest close since April. The developments revived fears of a 2023-style banking crisis, with analysts warning of “storm clouds gathering.”
Credit Jitters Send Stocks Reeling, Gold to All-Time High
