Stocks closed lower on Thursday, giving up earlier gains, led by declines in bank stocks on worries about bad loans. Traders also juggled persistent trade tensions and an ongoing U.S. government shutdown.
The Dow Jones Industrials stumbled 301.07 points to 45,952.24.
The S&P 500 dipped 41.99 points to 6,629.07
The tech-heavy NASDAQ shed 107.54 points to 22,562.54.
Regional banks Zions and Western Alliance fell to their lows of the day as indexes rolled over. Zions plunged 13% after taking a sizable charge because of bad loans to a couple borrowers. Western Alliance dropped 11% after alleging a borrower had committed fraud.
The banking industry has been on edge lately following the bankruptcies of two auto industry-related companies that have raised concerns about loose lending practices, especially in the opaque private credit market.
President Donald Trump last week threatened to place an additional 100% tariff on any goods coming from China in response to the country’s new export controls on rare earth minerals. The trade tone softened over subsequent days, but tensions increased again Tuesday, when Trump threatened China with a cooking oil trade ban.
Investors are also keeping a watchful eye as the U.S. government shutdown continues for a third week.
The stoppage has led to an indefinite shutdown of crucial economic data releases from federal agencies.
Prices for the 10-year Treasury found new energy Thursday, lowering yields to 3.97% from Wednesday’s 4.04%. Treasury prices and yields move in opposite directions.
Oil prices thundered lower 76 cents to $57.51 U.S. a barrel.
Gold prices jumped $123.40 to $4,325 U.S. an ounce.
