Live: ASX to slip as Wall Street falls on worries about bad bank loans

Market Overview - Wall Street experienced a decline, primarily driven by concerns surrounding US regional banks and renewed trade tensions with China [1][2] - The S&P 500 fell by 0.6% to close at 6,629, while the Nasdaq Composite and Dow Jones Industrial Average dropped by 0.5% to 22,562 and 0.7% to 45,952, respectively [2] Banking Sector - Zions Bancorporation reported unexpected losses on two California loans, leading to a significant drop in its shares [1] - Western Alliance's shares also fell after the bank initiated a fraud lawsuit against a borrower, raising concerns about hidden credit stress amid high interest rates [1] Trade Tensions - President Donald Trump threatened to impose 100% tariffs on Chinese imports starting November 1, in response to China's restrictions on rare earth exports, contributing to market jitters [2][3] Earnings and Market Sentiment - Despite solid earnings from major banks, the insurance sector, particularly Travelers and Marsh & McLennan, reported weaker results, negatively impacting market sentiment [3] - Analysts project a 9.2% increase in S&P 500 earnings for the third quarter, slightly above previous forecasts [3] Technology Sector - Optimism around artificial intelligence (AI) remains mixed; TSMC increased its AI spending outlook, while major tech companies like Tesla, Meta, and Palantir saw declines [4] - Salesforce, after facing cyber threats, saw its stock rise following a revenue forecast of $60 billion by 2030, highlighting the underlying fragility in the market despite AI enthusiasm [4]