U.S. stock futures drop amid concerns over regional banks

S&P 500 Futures inched 0.2% lower to 6,654.50 points, Nasdaq 100 Futures dropped 0.2% to 24,778.50 points, while Dow Jones Futures traded 0.1% lower at 46,097.0 points

U.S. stock index futures edged down on Thursday evening after the country’s stock markets closed lower on concerns about the health of regional banks, while China-U.S. tensions and an ongoing government shutdown further dampened investor sentiment.

S&P 500 Futures inched 0.2% lower to 6,654.50 points, while Nasdaq 100 Futures also dropped 0.2% to 24,778.50 points by 00:10 GMT. Dow Jones Futures traded 0.1% lower at 46,097.0 points.

Stock markets closed lower in regular trading.

Regional bank shares declined earlier in the session after Zions Bancorporation and Western Alliance Bancorporation disclosed loan losses tied to potential fraud, reviving fears of weak credit oversight across smaller lenders.

Zions said it would write off around $50 million after uncovering “misrepresentations and contractual defaults” on commercial loans via its California Bank & Trust unit. Western Alliance said it was pursuing legal action against a borrower over allegedly fraudulent collateral.

Zions dropped more than 13%, and Western Alliance shed nearly 10%, dragging the KBW Regional Banking index down nearly 6%.

Broader market sentiment was also pressured by geopolitical and political headwinds.

Investors remained wary of worsening China-U.S. trade tensions, as Trump has announced plans to impose an additional 100% tariff on all imports from China starting next month in response to Beijing’s restrictions on rare earth shipments.

Meanwhile, the U.S. government shutdown, now in its third week, continued to weigh on confidence, disrupting economic data releases and raising concerns about near-term growth.

Chip-related optimism following Taiwan Semiconductor Manufacturing Co’s upbeat results helped lift some large-cap tech names earlier in the day, but weakness in industrials and financials offset those gains.

Despite earlier strength from robust bank earnings this week, Thursday’s rout in regional lenders erased much of those gains.7