Market Wrap: Stocks Fall as Fears of Bad Bank Loans Grip Wall Street
U.S. stocks closed lower on Oct. 16 as concerns over bad bank loans spooked investors, dragging major indices into the red. The Dow Jones Industrial Average dropped 301.07 points (0.7%), erasing an earlier 170-point gain. The S&P 500 fell 0.6%, while the Nasdaq declined 0.5%.
Regional banks bore the brunt of the selloff. Zions Bancorp and Western Alliance tumbled 13% and 11% respectively after disclosing significant charges tied to nonperforming loans. Western Alliance alleges fraud by a major borrower, amplifying sector-wide jitters.
Market sentiment remains fragile. Investors contend with stretched valuations, fading AI enthusiasm, escalating U.S.-China trade tensions, and Washington's budget impasse. The banking sector's woes now join this list of concerns rattling markets.
