Wall Street Muted Amid Bank Credit Jitters as Regional Banks Face Loan Concerns
U.S. stocks traded mixed as lingering concerns over bad loans at regional banks overshadowed President Donald Trump's comments on U.S.-China trade tensions. The Dow Jones Industrial Average edged up 50 points, while the S&P 500 slipped 0.2% and the Nasdaq Composite fell 0.4%.
Western Alliance Bancorp and Zions Bancorp led declines in the financial sector, plunging 11% and 13% respectively after disclosing exposure to fraudulent loans. The revelations triggered a broader sell-off across risk assets as investors reassessed credit quality in the banking system.
Trade war Optimism provided limited relief, with Trump's Friday remarks about unsustainable tariffs offering temporary support. However, the combination of trade uncertainty and ongoing government shutdown continues to weigh on equity markets, driving some capital toward safe-haven assets.
