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  • 4 months ago
Wall Street closed lower on Thursday (October 16), with signs of weakness in regional banks spooking investors already on edge over U.S.-China trade tensions. The S&P 500 lost 41.99 points, or 0.63%, to end at 6,629.07 points, while the Nasdaq Composite lost 107.54 points, or 0.47%, to 22,562.54. The Dow Jones Industrial Average fell 301.07 points, or 0.65%, to 45,952.24.
Transcript
00:00Wall Street closed lower on Thursday, October 16, with signs of weakness in regional banks smoking investors already on edge over U.S.-China trade tensions.
00:11Shares of Zion's bank corporation tumbled after the regional bank disclosed an expected loss on two loans in its California division,
00:19adding to growing investor unease about hidden credit stress as lenders navigate economic uncertainty with interest rates still relatively high.
00:28Also fueling worries about regional banks, Western Alliance slumped after it said it initiated a fraud lawsuit against one of its borrowers.
00:38Stocks are sputtering a little bit. Based on a handful of banks coming out just in the latter half of the day,
00:47talking about even more credit losses than what's occurred over the last month.
00:52You had Tricolor, you had First Brands, now you have Zion's bank and Western Alliance coming out,
01:00posting much higher losses and much higher reserves than the market was expecting due to potential credit losses on some of their lending portfolio.
01:10Bank investors are starting to get nervous that this isn't just a canary in a coal mine,
01:15that there's a lot more to come about in terms of credit losses.
01:22Bank investors are closing the district brethren,
01:25and, even as the velocity remained,
01:26that there's a lot more to come about in terms of credit losses from one of the two companies These but the playing LOT has scheduled be part of DRA
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