FX.co ★ US Stock Futures Fall on Regional Banking Stress

On Friday, US futures experienced a downturn, with S&P 500 and Nasdaq 100 contracts declining by over 1% and Dow Jones futures plummeting 350 points. This drop resulted from underwhelming earnings and indicators of credit strain at regional banks, which heightened concerns about US creditworthiness and exerted downward pressure on global stocks. In premarket trading, Zions Bancorporation saw a reduction of more than 1%, following a substantial 13.1% decline in the previous session. This came after the company revealed a $50 million third-quarter loss stemming from two loans issued by its California branch. Similarly, Western Alliance experienced a 2.4% decline after dropping 10.8%, as it filed a lawsuit citing fraud allegations against Cantor Group V, LLC. Major financial institutions also faced challenges ahead of the market opening, with Bank of America down by 2.4%, Morgan Stanley decreasing by 1%, Goldman Sachs falling by 1.5%, and Citigroup losing 1.9%. Investors are set to focus on the earnings reports from several regional banks scheduled for release today, as well as the report from American Express. Despite the day's fluctuations, the S&P 500 has increased by 1.2% this week, the Dow Jones has risen by 1%, and the Nasdaq has surged 1.6%.