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postUS stocks continued to slide before the bell on Friday as fears spread about regional banks’ exposure to bad loans and US credit quality, spurring an exodus by investors to safe havens.
Dow Jones Industrial Average futures (YM=F) fell roughly 0.7%, while those on the S&P 500 (ES=F) sank 0.6%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) pared steeper losses, down 0.5%.
Stocks are set for a second day of losses after two US regional lenders disclosed problems with loans, allegedly linked to fraud. Those troubles deepened Wall Street jitters sparked by JPMorgan (JPM) CEO Jamie Dimon’s “cockroach” warning, seen as further signs of cracks in the creditworthiness of US borrowers.
Shares of Western Alliance Bancorp. (WAL) and Zions Bancorp. (ZION) plunged nearly 10% and 13% respectively on Thursday after their disclosures. Eyes are now on earnings reports from other regional banks due Friday, Truist Financial Corp., (TFC), Huntington Bancshares (HBAN), and Fifth Third Bancorp (FITB) among them.
The rush to safety picked up pace early on Friday, with investors flocking to less-risky assets such as bonds and gold (GC=F). The 10-year Treasury yield (^TNX) fell further below the key 4% level, while gold rose to a fresh record above $4,300 an ounce.
The stock selloff caps a turbulent week for markets, plagued by rising US-China trade tensions and the prospect of a prolonged US federal shutdown.
In trade, China is imposing fresh export controls and sanctions amid escalating threats from President Trump to impose new tariffs. But a small bright spot emerged Thursday: The White House is preparing to ease tariffs on the auto industry as soon as Friday.
Meanwhile, the government shutdown is dragging on, with some lawmakers now worried the stoppage could extend into November and even past Thanksgiving. Federal workers’ paychecks remain suspended as Trump threatens to block back pay and the courts consider his effort to fire thousands.
Amid the headwinds, earnings season is in full swing following strong results from big banks. Along with the increased focus on regionals, the parade of results continues with American Express (AXP) reporting.
LIVE 9 updates
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American Express CEO to Yahoo Finance on banking stress: Not seeing it at our company
With the concerning news from banks like Zions (ZION) yesterday on loan blow-ups — which comes on the heels of the situations at Tricolor and First Brands — it’s good to see contagion not spreading to a company in American Express (AXP).
What CEO Steve Squeri just told me by phone:
“I don’t see any blowback. If you look at what these banks were reporting, [it] was big one-time losses. And we don’t do that. What would be concerning to me would be the delinquency rate getting out of control, because that’s a leading indicator of people potentially going into default. And we’re at 1.3% across our business globally, and the gap to our competitors continues to widen from a delinquency perspective. So I can worry about what I can see.”
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America’s wealthiest shoppers are boosting spending — and the US economy — while lower earners pull back
Americans making over $100,000 a year are boosting the US economy, with industries ranging from travel and the auto industry to packaged foods and even dollar stores feeling the shift, writes Yahoo Finance’s Brooke DiPalma.
She reports:
Read more here.
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Good morning. Here’s what’s happening today.
Please note some economic data may not be available due to the government shutdown.
Economic data: Housing starts (September); Building permits, (September preliminary reading); Housing starts (September); Import price index (September); Import price index (September) Export price index (September); Export price index (September); Industrial production (September); Manufacturing production (September); Capacity utilization (September)
Earnings calendar: American Express (AXP), Truist (TFC), State Street (STT), Ally Financial (ALLY), Comerica (CMA)
Here are some of the biggest stories you may have missed overnight and early this morning:
Wall Street credit worries intensify after Dimon’s ‘cockroach’ warning
AI can’t justify its massive buildout — but doesn’t have to, yet
Tariffs help trim US deficit in first drop since COVID era
Bitcoin continues to slide after historic crypto wipeout
Rich shoppers drive US spending as lower earners cut back
Novo, Lilly fall as Trump promises cut in Ozempic’s price
US bank stock losses deepen in wait for earnings
Amex earnings top estimates as platinum card demand surges
Trump says $20B project Schumer wants is ‘pretty much dead
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Bitcoin struggles after historic crypto wipeout
Bloomberg reports:
Read more here.
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Dollar set for worst week since July on Fed bets, bank woes
The dollar is set to have its worst week since July, falling for a fourth day, amid dovish signals from the Fed and new worries over US regional banks.
Bloomberg News reports:
Read more here.
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Bank stocks’ rout deepens as investors brace for earnings
US bank stocks extended their losses in premarket, after a sharp sell-off in regional lenders on Thursday. Those declines were led by Zions and Western Alliance, which flagged problems with loans allegedly linked to fraud.
Shares of Bank of America (BAC) and Citigroup (C) slid about 2%, while Morgan Stanley (MS and Wells Fargo (WFC) saw slighter falls in early trading on Friday morning.
Bloomberg reports:
Read more here.
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Premarket trending tickers: MP Materials, Wolfspeed and EssilorLuxottica
Here’s a look at some of the top stocks trending in premarket trading:
MP Materials (MP) stock fell 3% in premarket trading on Friday. The rare earths company has found itself caught up in the US-China trade tensions, as China imposed restrictions on its rare earths, forcing the US to diversify its suppliers.
Wolfspeed (WOLF) stock fell 4% before the bell. The chipmaker announced on Thursday that it would discuss its fiscal 2026 first quarter results on Wednesday, October 29, 2025, at 5:00 p.m. ET.
Shares in Ray-Ban maker EssilorLuxottica (EL.PA) hit rose on Friday, surging over 10% after the eyewear giant’s record quarter showed sales of its Ray-Ban Meta (META) smart glasses gaining momentum.
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Gold climbs to record on bank woes, Fed bets, and trade tensions
Gold (GC=F) rose again today, hitting another record. The safe-haven asset was boosted by concerns about credit quality in the economy, bets that the Federal Reserve will press on with monetary easin and heightened US-China relations.
Bloomberg News reports:
Read more here.
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Trump says price of Ozempic will soon be ‘much lower.’ Novo, Lilly shares fall.
Shares in Novo Nordisk (NVO, NOVO-B.CO) and Eli Lilly (LLY) slid after President Trump said on Thursday that the price of Ozempic would soon fall to just $150 a month.
Novo, which makes the best-selling weight-loss drug, saw its stock fall over 4% in US premarket and over 6% in Copenhagen. The Danish pharma’s shares have lost almost 60% in the past 12 months amid questions about whether it can maintain its prominence in the weightloss market.
At the same time, shares of Lilly retreated over 4% before the bell.
Bloomberg reports:
Read more here.
