HomeFinancial MarketsStocks Decline Following Credit Suisse Takeover

Stocks Decline Following Credit Suisse Takeover

U.S. stocks fell on Monday following the news that UBS Group AG has closed a deal to purchase the struggling Credit Suisse investment bank. The state-backed takeover is worth over $3 billion.

“This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue,” UBS chair Colm Kelleher said of the deal.

Futures on the S&P 500 edged 0.1% down during Monday’s morning session with the Nasdaq Composite Index declining 0.2%. In contrast, the Dow Jones Industrial Average gained 0.3%.

Banking stocks embarked on a gradual recovery following news of the UBS acquisition, with the KBW Bank Index rising on Monday. Among the banking stocks that experienced gains are Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo.

While two-year yields remained mostly unchanged, the benchmark 10-year U.S. Treasury note advanced by 3.4%, thereby indicating a recovery from Friday’s losses.

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