16.10.202518:49:58UTC+00US Equities Slide on Bank Losses, Trade Worries

On Thursday, Wall Street experienced a downturn as stocks retreated from earlier advances. The decline was fueled by resurging credit worries and ongoing US-China trade disputes, which negatively impacted investor sentiment. The S&P 500 and Nasdaq 100 both slipped by over 0.7%, while the Dow Jones Industrial Average dropped by more than 300 points. The financial sector bore the brunt of the selloff, particularly among regional banks such as Zions Bancorporation, which fell by 13%, and Western Alliance, down by 10.8%, following revelations of significant loan losses. These downturns occurred despite an initial rally in the session spurred by chipmakers' performance. TSMC's announcement of an uplifted full-year revenue forecast and a nearly 40% increase in profit had initially generated optimism about demand driven by artificial intelligence. Among major tech and AI stocks, performances were varied: Apple declined by 1.4%, Meta dropped by 1.6%, Tesla decreased by 2.7%, and Amazon dipped by 1.1%, while Nvidia saw a slight rise of 0.4%. Tensions between the US and China continue to escalate, with former President Trump asserting, "You're in a trade war now." The ongoing government shutdown, now in its third week, is further compounding market uncertainty by delaying critical economic data.