Wall Street closed lower on Thursday as renewed concerns about regional banks and intensifying U.S.-China trade tensions weighed on investor sentiment, pulling major indexes off recent record highs.
Shares of Zions Bancorporation tumbled after the lender revealed unexpected losses on two California loans, heightening unease about hidden credit risks among regional banks still contending with elevated interest rates. Western Alliance also slumped after disclosing it had filed a fraud lawsuit against one of its borrowers, adding to the sector’s woes.
The sell-off came as investors already faced rising uncertainty over trade policy. U.S. President Donald Trump threatened to impose 100% tariffs on Chinese imports starting November 1, alongside new measures targeting Beijing’s export restrictions on rare earth minerals.
“With the added uncertainty of U.S. and China trade and increased rhetoric and what that could mean for the economy and for the markets, I think that’s adding to market instability,” said Tom Hainlin, investment strategist at U.S. Bank Wealth Management in Minneapolis.
While TSMC, the world’s top chip manufacturer, issued a bullish forecast on AI spending, heavyweight tech stocks Palantir, Tesla, and Meta Platforms all slipped, curbing optimism in the sector.
Salesforce surged after projecting revenue above $60 billion by 2030, beating Wall Street estimates and offering a bright spot amid broader weakness.
Despite Thursday’s drop, the S&P 500 remains up 12% so far in 2025, buoyed by optimism over artificial intelligence and expectations of Federal Reserve rate cuts. However, with the index now valued at 23 times expected earnings — its highest multiple in five years — analysts say investor caution is warranted.
Robust earnings from major banks earlier in the week had underscored U.S. economic resilience, though official macroeconomic data remain delayed due to the ongoing government shutdown. Analysts expect S&P 500 earnings to rise 9.2% in Q3, up from 8.8% two weeks ago, according to LSEG I/B/E/S data.
Still, weakness in the insurance sector added pressure. The S&P 500 insurance index fell after Travelers Companies posted disappointing quarterly revenue, while Marsh & McLennan also dropped following a report of flat margins and slowing growth.
According to preliminary figures, the S&P 500 lost 42.10 points, or 0.63%, to close at 6,628.96; the Nasdaq Composite declined 105.77 points, or 0.47%, to 22,564.31; and the Dow Jones Industrial Average dropped 298.48 points, or 0.65%, to 45,954.83.
The Philadelphia Fed Business Index for October also disappointed, falling 12.8 points versus expectations of an 8.5-point gain. Meanwhile, Federal Reserve Governor Christopher Waller said he supports another rate cut in October, citing mixed signals in the job market.
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The collective-defence agreement between Türkiye, Saudi Arabia and Pakistan signals that regional powers no longer want to rely solely on external security guarantees. Whether it becomes a stabilising deterrent or another axis of rivalry remains unresolved.
U.S. President Donald Trump says Washington is not seeking an extension of its memorandum of understanding with Iran, claiming the U.S. already controls the Strait of Hormuz through its naval blockade.
Shipping through the Strait of Hormuz has slowed, according to the latest data, as uncertainty over the waterway’s reopening kept most shipowners away. Six commodity vessels crossed the strait on Tuesday, down from nine the day before and below the 10-day daily average of 11.
Iran has said the Strait of Hormuz will remain closed until the U.S. fulfils the terms of an interim deal, including lifting the maritime blockade and sanctions and releasing Iran’s frozen assets.
Ukraine has targeted at least 20 Wildberries warehouses across Russia since 18 July, disrupting a major logistics network. Kyiv says the strikes aim to disrupt alleged military-linked supplies, while the attacks have caused billions of dollars in losses and wider economic pressure.
Once associated mainly with Muslim-majority countries, Islamic finance has become a global industry. Its assets reached around $5.98 trillion in 2025, according to ICD–LSEG, as more countries explore Shariah-compliant finance.
Azerbaijan exported goods worth $17.372 million to Armenia between January and July 2026, according to data from the State Customs Committee, as commercial ties between the two South Caucasus neighbours showed signs of expansion.
Online fast-fashion platform Shein lost a London copyright lawsuit against rival Temu on Thursday over photographs used to promote some products.
Norway’s $2.3 trillion sovereign wealth fund has revealed a 0.05 per cent stake in SpaceX worth $1.22 billion, marking its first reported holding in Elon Musk’s space company.
U.S. data analytics firm Palantir Technologies has reported a 93 per cent year-on-year jump in second-quarter revenue, even as the company faces continued criticism over its work with Israel's military and allegations linking its technology to the war in Gaza.a.
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