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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Speaking during a closed-door deposition in New York on Thursday (February), former U.S. Secretary of State Hillary Clinton said she did not “recall” ever meeting the late sex offender Jeffrey Epstein and had “no knowledge of his crimes”.
Pakistan’s declaration of an “open war” with Afghanistan must be understood in the context of months of escalating violence, regional analysts have said, describing the latest developments as a significant shift in the nature of the conflict.
Iran’s Foreign Minister Abbas Araghchi on Friday urged Afghanistan and Pakistan to resolve their differences through dialogue, offering Tehran’s assistance to facilitate understanding between its eastern neighbours.
Tensions between the U.S. and Iran are escalating, with Washington ordering a significant military build-up in the region and multiple countries evacuating diplomatic staff amid fears of further instability.
The death toll from heavy rains and flooding in Brazil’s Minas Gerais state has risen to 46, authorities said, with 21 people still reported missing. The storms triggered landslides and widespread flooding, displacing thousands across Juiz de Fora and Uba.
The situation in Cuba was heating up and called for restraint following a deadly incident involving a Florida-registered speedboat off the coast of the Caribbean island, the Kremlin said on Thursday (26 February).
Syria’s economy is showing clear signs of recovery, with economic activity accelerating in recent months, the International Monetary Fund (IMF) said on Wednesday.
Pakistani air strikes hit a weapons depot on the western outskirts of Kabul overnight, triggering hours of secondary explosions that rattled homes across the Afghan capital and left residents fearing further violence.
Paramount Skydance emerged as the winner in a months-long battle to acquire Warner Bros Discovery after streaming giant Netflix on Thursday refused to raise its bid for the storied Hollywood studio.
Global debt surged to a record $348.3 trillion at the end of 2025, after nearly $29 trillion was added over the year, marking the fastest annual increase since the pandemic, according to the Institute of International Finance (IIF) report released on Wednesday.
Millions of Colombian roses have arrived in the United States just in time for Valentine’s Day, keeping the country on track as the world’s second-largest flower exporter. Between 15 January and 9 February, Colombia shipped roughly 65,000 tons of fresh-cut blooms.
Russia’s car market is continuing to receive tens of thousands of foreign-brand vehicles via China despite sanctions imposed after Moscow’s full-scale invasion of Ukraine in 2022, a journalistic investigation has found.
Türkiye’s national energy company, TPAO, has struck a new cooperation deal with U.S. energy giant Chevron, signing a memorandum of understanding to explore joint oil and gas exploration and production opportunities, the Turkish Energy and Natural Resources Ministry announced on Thursday.
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