HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
US markets end lower amid concerns about credit risk
Oct-17-2025

The US markets ended lower on Thursday after concerns about credit risk weighed on investors’ sentiments following the recent bankruptcies of two auto industry-related companies First Brands and Tricolor Holdings. Regional banks Zions Bancorp (ZION) and Western Alliance (WAL) plunged amid concerns about band loans, while Jefferies (JEF), which has some exposure to First Brands, also tumbled. Traders also remained on sidelines after Federal Reserve Bank of Philadelphia released a report showing a substantial pullback by its reading on regional manufacturing activity in the month of October. It said that its diffusion index for current general activity plunged to a negative 12.8 in October after spiking to a positive 23.2 in September, with a negative reading indicating contraction. Meanwhile, street had expected the index to slump to a positive 10.0.

On sectoral front, significant weakness has been seen in brokerage stocks, as reflected by the 1.9% loss posted by the NYSE Arca Broker/Dealer Index. Airline, energy and retail stocks also came under pressure as the day progressed, while gold stocks continue to turn in a strong performance as the price of precious metal surged to new record highs.

Dow Jones Industrial Average slid 301.07 points or 0.65 percent to 45952.24, Nasdaq fell 107.54 points or 0.47 percent to 22,562.54 and S&P 500 declined 41.99 points or 0.63 percent to 6,629.07.

  RELATED NEWS >>