Overview
- U.S. stocks turned modestly higher Friday after a sharp Thursday pullback tied to fresh concerns over regional-bank loan quality.
- Zions Bancorporation and Western Alliance rebounded in early trade after disclosures of a $50 million loss and exposure to problematic borrowers drove double-digit drops a day earlier.
- Treasury swings underscored nerves, with the 10-year yield falling to about 3.97% Thursday before edging back near 4.01% Friday as the Vix jumped more than 20%.
- Expectations for imminent Federal Reserve rate cuts—reinforced by Jerome Powell’s remarks and the Beige Book—combined with strong results from TSMC and major U.S. banks to support tech and financial shares.
- The policy backdrop stayed in focus as the shutdown pushed key releases such as September CPI to Oct. 24, while President Trump called 100% China tariffs not “viable” and said he plans to meet Xi Jinping in about two weeks.