FX.co ★ Banks Drag US Stocks Lower Amid Trade Tensions

On Thursday, U.S. stocks ended the trading session on a down note, largely due to concerns surrounding problematic loans in regional banks and ongoing U.S.-China trade tensions affecting market confidence. The S&P 500 declined by 0.6%, while the Nasdaq 100 and the Dow Jones decreased by 0.5% and 302 points, respectively. A significant drop of 13% was observed in Zions Bancorporation's shares following disclosures of loan losses, and Western Alliance experienced a 10.8% decline amidst legal issues involving a borrower's alleged fraud, heightening worries about credit quality. Earlier in the day, there was a temporary market uplift thanks to chipmakers such as TSMC, which reported strong earnings and revised revenue forecasts upwards, hinting at increased demand driven by advancements in artificial intelligence. Additionally, investors remained vigilant over escalating geopolitical threats, highlighted by former President Trump's remarks indicating that the U.S. is indeed engaged in a trade war with China, accompanied by the prospect of new tariffs. The third week of the U.S. government shutdown compounded market instability, having postponed the release of critical economic indicators and further contributing to the turbulent trading atmosphere.