U.S. stock index futures edged lower Thursday evening as Wall Street closed in the red, weighed down by renewed fears surrounding regional banks, escalating U.S.-China trade tensions, and the prolonged government shutdown.
S&P 500 Futures slipped 0.2% to 6,654.50 points, while Nasdaq 100 Futures dropped 0.2% to 24,778.50 points. Dow Jones Futures declined 0.1% to 46,097.0 points. During regular trading, the S&P 500 fell 0.6%, the NASDAQ Composite lost 0.5%, and the Dow Jones Industrial Average retreated 0.7%.
Regional bank stocks were among the biggest losers after Zions Bancorporation (NASDAQ: ZION) and Western Alliance Bancorporation (NYSE: WAL) reported significant loan losses linked to potential fraud. Zions said it would write off roughly $50 million following “misrepresentations and contractual defaults” at its California Bank & Trust unit. Western Alliance announced legal action against a borrower accused of presenting fraudulent collateral. The disclosures triggered steep selloffs, with Zions tumbling more than 13% and Western Alliance dropping nearly 10%, dragging the KBW Regional Banking Index down about 6%.
Investor sentiment also weakened amid rising geopolitical and political uncertainty. President Trump’s announcement of an additional 100% tariff on all Chinese imports, in response to Beijing’s rare earth export restrictions, further fueled concerns of deteriorating trade relations between the world’s two largest economies.
Meanwhile, the U.S. government shutdown, now entering its third week, continued to rattle markets, delaying key economic data and stoking fears about short-term growth prospects.
Despite early optimism from Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) earnings that briefly lifted tech stocks, broader market declines in industrials and financials erased those gains. JB Hunt (NASDAQ: JBHT) surged over 20% after posting strong results, while Eli Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO) fell as Trump hinted at sharp price cuts for obesity drugs.


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