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A display shows most indicators down on the floor at the New York Stock Exchange in New York, Wednesday, March 15, 2023. Stocks are falling on Wall Street as worries worsen about the strength of banks on both sides of the Atlantic. 

Traders work on the floor at the New York Stock Exchange on Wednesday in New York.

In 2016, Vice President Joe Biden warned against efforts to unravel banking regulations that Democrats had fought to implement following the nation’s financial crisis, just as the emerging Trump administration was determined to loosen those strict banking rules. Biden argued that without the…

NEW YORK — Markets shuddered Wednesday on worries about a spreading banking crisis and how badly it will hit the economy, and stocks and bond yields fell on both sides of the Atlantic.

A display shows most indicators down on the floor at the New York Stock Exchange in New York, Wednesday, March 15, 2023. Stocks are falling on Wall Street as worries worsen about the strength of banks on both sides of the Atlantic. 

The S&P 500 sank as much as 2.1% before ending the day with a loss of 0.7%, while markets in Europe fell more sharply as shares of Switzerland’s Credit Suisse dropped to a record low. The Dow Jones Industrial Average lost 280 points, or 0.9%, after dropping as much as 725 points. The Nasdaq composite rose 0.1% after erasing a steep decline.

Markets trimmed their losses toward the end of the day as the Swiss National Bank said it could provide some assistance to Credit Suisse “if needed.”

But that came only after a steep drop for Credit Suisse rattled investors worldwide. Its shares in Switzerland sank 24.2% following reports that its top shareholder won’t pump more money into its investment. The bank has been fighting troubles for years, including losses it took related to the 2021 collapse of investment firm Archegos Capital.

“They've had issues,” said Anthony Saglimbene, chief market strategist at Ameriprise. “It's just coming at a time when there’s more uncertainty and there’s less confidence in the banking system.”

Wall Street’s harsh spotlight has intensified across the banking industry recently on worries about what may crack next following the second- and third-largest bank failures in U.S. history over the last week. Stocks of U.S. banks tumbled again Wednesday after enjoying a brief, one-day respite on Tuesday.

The heaviest losses were focused on smaller and midsize banks, which are seen as more at risk of having customers try to pull their money out en masse. Larger banks also fell, but not by quite as much.

Traders work on the floor at the New York Stock Exchange on Wednesday in New York.

First Republic Bank sank 21.4%, a day after soaring 27%. JPMorgan Chase slid 4.7%.

Many analysts were quick to say the current weakness for banks looks nowhere near as bad as the 2008 crisis that torpedoed the global economy. But worries are nevertheless rising that pain spreading through the banking system could spark a downturn.

“When you have worries about contagion and a financial crisis, there is increasing risk of a global recession,” Saglimbene said, pointing to the first drop in the price of U.S. crude oil below $70 per barrel since late 2021. A weaker economy would burn less fuel.

“The regional banks are so important to small businesses, midsized businesses” by providing loans, he said. "They're a centerpiece of the economy."

Much of the damage for banks is seen as the result of the Federal Reserve’s fastest barrage of hikes to interest rates in decades. The Fed has pulled its key overnight rate to a range of 4.50% to 4.75%, up from virtually zero at the start of last year, in hopes of driving down painfully high inflation.

Higher rates can tame inflation by slowing the economy, but they raise the risk of a recession later on. They also hurt prices for stocks, bonds and other investments. That latter factor was one of the issues hurting Silicon Valley Bank, which collapsed Friday, because high rates forced down the value of its bond investments.

The Fed's rate hikes over the past year have shocked the system following years of historically easy conditions. In his annual letter to investors, BlackRock CEO Larry Fink pointed to prior eras of rising rates that led to “spectacular financial flameouts,” such as the yearslong savings and loan crisis.

“We don’t know yet whether the consequences of easy money and regulatory changes will cascade throughout the U.S. regional banking sector (akin to the S&L Crisis) with more seizures and shutdowns coming,” he wrote.

Some of this week’s wildest action has been in the bond market, where traders are rushing to guess what all the chaos will mean for future Fed action. On one hand, stress in the financial system could push the Fed to hold off on hiking rates again at its meeting next week, or at least refrain from the larger rate hike it had been potentially signaling.

On the other hand, inflation is still high. While taking it easier on interest rates could give more breathing space to banks and the economy, the fear is such a move by the Fed could also give inflation more oxygen.

Weaker-than-expected economic reports released Wednesday may have allayed some of those worries. One showed that inflation at the wholesale level slowed by much more last month than economists expected. It’s still high at a 4.6% level versus a year earlier, but that was better than the 5.4% that was forecast.

Other data showed that U.S. spending at retailers fell by more than expected last month. Such data could raise worries about a recession on the horizon, but they may also take some pressure off inflation in the near term.

That caused the yield on the two-year Treasury to plummet. It tends to track expectations for the Fed, and it dropped to 3.89% from 4.25% late Tuesday. That’s a massive move for the bond market. The two-year yield was above 5% just a week ago, at its highest level since 2007.

In Europe, indexes tumbled on weakness from banks. France’s CAC 40 dropped 3.6%, and Germany’s DAX lost 3.3%. The FTSE 100 in London fell 3.8%.

On Wall Street, companies in the oil and gas business had the sharpest stock drops. Helping to cushion the blow were gains for several Big Tech stocks. They've had their own struggles recently, but they tend to benefit from lower interest rates.

All told, the S&P 500 fell 27.36 points to 3,891.93. The Dow lost 280.83 to 31,874.57, while the Nasdaq rose 5.90 to 11,434.05.

FILE - People are seen through a window inside a restaurant at Patriarshiye Prudy with the word on the wall reads "Patriki" which means Patriarch's Ponds, a hip restaurants and bars district in Moscow, Russia, on Feb. 10, 2023. Russia has weathered sweeping Western economic sanctions better than many expected. Economic life for everyday Russians hasn't changed that much, with familiar imported goods either still available or replaced by local knockoffs. (AP Photo/Alexander Zemlianichenko, File)

FILE - The tanker Sun Arrows loads its cargo of liquefied natural gas from the Sakhalin-2 project in the port of Prigorodnoye, Russia, on Oct. 29, 2021. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (AP Photo, File)

FILE - A view of the business tower Lakhta Centre, the headquarters of Russian gas monopoly Gazprom in St. Petersburg, Russia, on April 27, 2022. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (AP Photo, File)

FILE - An oil tanker is moored at the Sheskharis complex, part of Chernomortransneft JSC, a subsidiary of Transneft PJSC, in Novorossiysk, Russia, on Oct. 11, 2022, one of the largest facilities for oil and petroleum products in southern Russia. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. (AP Photo, File)

FILE - Russian state-run Sberbank headquarters in downtown Moscow, Russia on July 29, 2014. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (AP Photo/Ivan Sekretarev, File)

FILE - People line up to visit a newly opened restaurant in a former McDonald's outlet in Bolshaya Bronnaya Street in Moscow, Russia, on Jan. 25, 2023. Crowds might have thinned at some Moscow malls, but not drastically. Some foreign companies like McDonald's and Starbucks have been taken over by local owners who slapped different names on essentially the same menu. (AP Photo/Alexander Zemlianichenko, File)

FILE - People wait in a line to pay for her purchases at the IKEA store on the outskirts of Moscow, Russia, on March 3, 2022. Furniture and home goods remaining after IKEA exited Russia are being sold off on the Yandex website. (AP Photo, File)

FILE - Russian President Vladimir Putin gestures while speaking at a news conference following a meeting of the State Council at the Kremlin in Moscow, Russia on Dec. 22, 2022. Russia's economy has weathered the West's unprecedented economic sanctions far better than expected. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (Sergey Guneyev, Sputnik, Kremlin Pool Photo via AP, File)

FILE - Deputy Chairman of the Russian Security Council Dmitry Medvedev, second left, accompanied by Russian Presidential Envoy to Ural Federal District Vladimir Yakushev, left, visits the Uralvagonzavod factory in Nizhny Tagil in Nizhny Tagil, Russia, on Oct. 24, 2022. Russia has weathered sweeping Western economic sanctions better than many expected. (Ekaterina Shtukina, Sputnik, Government Pool Photo via AP, File)

A view of the Audi Center Altufievo one of 36 dealerships of Avtodom in Moscow, St. Petersburg and Krasnodar, in Moscow, Russia, Friday, March 10, 2023. The auto industry is facing bigger hurdles to adapt. Western automakers, including Volkswagen and Mercedes-Benz, have left Russia. Foreign cars are still available but far fewer of them and for higher prices, said Andrei Olkhovsky, CEO of Avtodom, which has 36 dealerships in Moscow, St. Petersburg and Krasnodar. (AP Photo/Alexander Zemlianichenko)

People walk past a Sviaznoy mobile phone shop in a shopping mall in St. Petersburg, Russia, Friday, March 10, 2023. Apple has stopped selling products in Russia, but Wildberries, the country's biggest online retailer, offers the iPhone 14 for about the same price as in Europe. Online retailer Svaznoy lists Apple AirPods Pro. (AP Photo)

FILE - Few visitors pass inside the GUM department store with lots of boutiques closed due to sanctions in Moscow, Russia, on June 1, 2022. U.S. officials say Russia is now the most sanctioned country in the world. But as the war nears its one-year mark, it's clear the sanctions didn't pack the instantaneous punch that many had hoped. (AP Photo/Alexander Zemlianichenko, File)

New made "Moskvich" cars are seen at the assembly shop of Moscow Automobile Plant "Moskvich" with the banner reads: "Moskvich (Muscovite) returns" in Moscow, Russia, Wednesday, Nov. 23, 2022. The auto industry is facing bigger hurdles to adapt. Russia launched production of the Moskvich car brand at a plant near Moscow given up by the French carmaker Renault, with a new, modern Chinese design that barely resembles the Soviet-era classic. (Kirill Zykov, Moscow News Agency via AP)

FILE - Employees of the Almaz-Antey Corporation's Obukhov Plant work at its assembly shop in St. Petersburg, Russia, on Jan. 18, 2023. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. The boon helped bolster the ruble after a temporary post-invasion crash and provided cash for government spending on pensions, salaries and — above all — the military. (Ilya Pitalev, Sputnik, Kremlin Pool Photo via AP, File)

A view of the Dealership Mercedes-Benz "Avilon" in Moscow, Russia, Saturday, March 11, 2023. The auto industry is facing bigger hurdles to adapt. Western automakers, including Volkswagen and Mercedes-Benz, have left Russia, but foreign cars are still available but far fewer of them and for higher prices. (AP Photo/Dmitry Serebryakov)

FILE - Newly built nuclear-powered icebreaker Ural, third of five icebreakers of Project 22220, begins its passage from the Baltiysky Shipyard to the northern city of Murmansk, in St. Petersburg, Russia, on Nov. 23, 2022. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (AP Photo/Dmitri Lovetsky, File)

FILE - A logo of a newly opened Stars Coffee in the former location of a Starbucks in Moscow, Russia, on Jan. 24, 2023. Crowds might have thinned at some Moscow malls, but not drastically. Some foreign companies like McDonald's and Starbucks have been taken over by local owners who slapped different names on essentially the same menu. (AP Photo/Alexander Zemlianichenko, File)

FILE - New vehicles Gazelle are parked in the territory of the Gorky Automobile plant (GAZ), one of the main budget-forming enterprises in the region in Nizhny Novgorod, Russia, on Aug. 11, 2022. After a year of far-reaching sanctions aimed at degrading Moscow's war chest, economic life for ordinary Russians doesn't look all that different than it did before the invasion of Ukraine. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (AP Photo, File)

FILE - People line up to enter an H&M shop and buy items on sale in the Aviapark shopping mall in Moscow, Russia, on Aug. 9, 2022. Russians are snapping up While 191 foreign companies have left Russia and 1,169 are working to do so, some 1,223 are staying and 496 are taking a wait-and-see approach, according to a database compiled by the Kyiv School of Economics. (AP Photo/Alexander Zemlianichenko, File)

FILE - Men walk at the Nokian Tyres tire manufacturing plant in Vsevolozhsk, outside St. Petersburg, Russia, on June 29, 2022. Russia's economy has weathered the West's unprecedented economic sanctions far better than expected. But with restrictions finally tightening on the Kremlin's chief moneymaker — oil — the months ahead will be an even tougher test of President Vladimir Putin's fortress economy. (AP Photo/Dmitri Lovetsky, File)

If you know of local business openings or closings, please notify us here.

- Air Products & Chemicals Inc. plans to invest a half-billion dollars to produce environmentally friendly hydrogen in New York state.

- The Trexlertown Chick-Fil-A plans to add a second drive-thru lane as part of a plan to reduce traffic congestion.

- The Harrisburg-based Mid Penn bank has opened its first full-service branch in the Lehigh Valley in South Whitehall.

- The Allentown Planning Commission put off a decision on a new Popeyes Louisiana Kitchen at the site of the former Nostos Greek restaurant.

- The former Star Crete concrete plant at the intersection of Farmersville Road and Easton Avenue has been sold for $1.58 million, and that may clear the way for a medical office building. 

- The local business SuperSets Gym will open its third location in Allentown's South Mall, with no opening date set yet.

- The jewelry boutique Versant will close later this year, but the business will be consolidated at Gary Werkheiser's other location in Saucon Valley Square.

- The DSW Woodmill Commons has moved to Berkshire West, 1101 Woodland Road in Wyomissing.

- Trainer Michael Melendez has opened his new Reading Extreme Boxing Club where PacSun used to operate in the Berkshire Mall. 

- Frackville NAPA Auto Parts held a grand opening with the Schuylkill Chamber of Commerce and Frackville Business & Professional Association. 

- Fyzical Therapy & Balance Centers in North Manheim Township held a grand opening, in conjunction with the Schuylkill Chamber of Commerce and Pottsville Business Association.

- PDC Machines, a maker of hydrogen compressors, showed off a new plant in Lower Salford.

- Maya Capital Partners has acquired Amwell Valley Self Storage, a 265-unit storage business on Route 31 in Ringoes, New Jersey.

- Norwescap is buying the former Sullivan's on the Main restaurant in Phillipsburg to renovate the building and then use it for programs to help educate and feed people.

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