U.S. Stocks Waver Amid Regional Bank Concerns and Trade Tensions
U.S. stocks traded with mixed results as investors grappled with worries about bad loans at regional banks. President donald Trump’s recent comments on U.S.-China trade tensions offered some relief,but concerns lingered.
on Friday, Trump suggested that tariffs on China might not be “enduring,” which calmed some nerves. However, the Dow Jones Industrial Average only gained 50 points, while the S&P 500 dipped by 0.2%. The tech-heavy Nasdaq Composite also fell by 0.4%.
Investors were spooked by news of loan fraud at two U.S. regional banks. Western Alliance Bancorp and Zions Bancorp saw thier shares plummet by 11% and 13%, respectively. This sparked fears about U.S. credit quality and led to a sell-off in risk assets.
Bitcoin prices also took a hit, dipping below $105,000. Meanwhile, gold prices surged past $4,300 an ounce, reflecting a flight to safety. This trend could see gold prices rise by more then 7% this week.
Despite White House plans to ease tariffs on autos, uncertainty remains. Investors are seeking clarity amid ongoing trade tensions and a government shutdown. The result is a slowdown in equities and a shift towards safe-haven assets.
