RTTNewsยท2025-10-17 13:00Market Overview - Major U.S. index futures indicate a flat open on Friday, following a downturn on Thursday due to bank credit concerns [1] - The Dow fell by 301.07 points (0.7%) to 45,952.24, S&P 500 declined by 41.99 points (0.6%) to 6,629.07, and Nasdaq dropped by 107.54 points (0.5%) to 22,562.54 [5] Company-Specific Developments - Jefferies (JEF) shares rose by 4% in pre-market trading after Oppenheimer upgraded its rating to Outperform, despite a previous drop of over 10% due to concerns about exposure to bankrupt auto parts company First Brands [2] - American Express (AXP) reported third-quarter results that exceeded analyst estimates and raised its full-year guidance, contributing to pre-market strength [3] - Taiwan Semiconductor (TSM) reported a larger-than-expected surge in third-quarter profits driven by strong AI chip demand, although its shares fell by 1.6% after reaching a record intraday high [7] Banking Sector Insights - Concerns about bad loans emerged following the bankruptcies of First Brands and Tricolor Holdings, impacting regional banks like Zions Bancorp (ZION) and Western Alliance (WAL) [6][9] - The KBW Bank Index fell by 3.6% amid these concerns, reflecting significant weakness in banking stocks [9] Economic Indicators - The Federal Reserve Bank of Philadelphia reported a substantial pullback in regional manufacturing activity, with the diffusion index for current general activity plunging to -12.8 in October from a positive 23.2 in September [8] International Market Reactions - Asian stocks declined due to heightened concerns over U.S. banks' loan portfolios and escalating Sino-U.S. trade tensions, with the Shanghai Composite Index falling by 2.0% and Hong Kong's Hang Seng Index plummeting by 2.5% [12][13] - European stocks also moved sharply lower amid renewed concerns about the U.S. banking sector, with the German DAX Index down by 1.4% and the U.K.'s FTSE 100 Index down by 1.0% [17][18]