Jin Rong Shi Bao·2025-10-17 12:50Group 1 - The core issue driving the recent downturn in the US stock market is the renewed concerns over credit, particularly following the significant stock price drops of regional banks Zions Bancorp and Western Alliance Bancorp, which both fell by over double digits [2] - The S&P Regional Banking Select Industry Index experienced a sharp decline of 6.3%, marking the largest single-day drop since April, driven by the fallout from the regional banks [2] - The total market capitalization of 74 large US banks decreased by over $100 billion in a single day due to the widespread sell-off in bank stocks [2] Group 2 - The recent loan defaults by Zions Bancorp and Western Alliance Bancorp have reignited fears of a potential financial crisis reminiscent of the subprime mortgage crisis, with investors worried about the implications of relaxed financial regulations in recent years [3] - Jamie Dimon, CEO of JPMorgan, warned that the current credit defaults may only be the tip of the iceberg, suggesting that more issues could arise in the US credit market [3] - The recent turmoil in the banking sector follows a series of failures earlier in 2023, including Silicon Valley Bank and Signature Bank, which had already raised concerns about the stability of the US banking system [3]