Wall Street steadies after its slide as banks recover some of their losses

The U.S. stock market showed signs of stabilization on Friday, with bank stocks recovering from significant losses earlier in the week. Despite this, Wall Street remains volatile, experiencing frequent fluctuations. The S&P 500 saw a slight decline of 0.1% in early trading, while the Dow Jones Industrial Average rose by 91 points (0.2%), and the Nasdaq composite dropped by 0.3%. Big Tech stocks, including Nvidia, faced downward pressure, dropping 0.6% amid concerns over inflated valuations driven by the artificial intelligence boom, despite strong profit growth. Meanwhile, bank stocks rebounded after several institutions, such as Fifth Third Bancorp, Huntington Bancshares, and Truist Financial, reported better-than-expected quarterly earnings. This recovery followed a sharp decline in the sector triggered by fears of bad loans affecting smaller and midsized banks. Zions Bancorp and Western Alliance Bancorp, both central to Thursday’s concerns, also saw gains, rising 3.4% and 2.9%, respectively. The market remains cautious as scrutiny intensifies over loan quality following the bankruptcy of First Brands Group, an auto parts supplier. Jefferies Financial Group, potentially impacted by the bankruptcy, rose 4.8% after a significant drop since mid-September. JPMorgan CEO Jamie Dimon warned of potential risks in the banking sector, likening them to ‘cockroaches,’ but analysts suggest the situation is not yet critical. Trading volatility persists amid geopolitical tensions, including President Trump’s tariff threats on China, though he later indicated a possible meeting with Chinese President Xi Jinping. Overseas, European and Asian markets saw declines, with Germany’s DAX dropping 1.8% and Hong Kong’s Hang Seng falling 2.5%. Treasury yields remained steady after Thursday’s sharp declines.