U.S. stocks dropped on Thursday, with the S&P 500 falling 0.6% and the Dow Jones losing 301 points. Zions Bancorp. tumbled 13.1% due to a $50 million charge-off related to loans. Western Alliance Bancorp. dropped 10.8% after suing a borrower for fraud. Scrutiny on loan quality is increasing following First Brands Group’s bankruptcy.
Taiwan Semiconductor Manufacturing Co. reported higher profits than expected, stating strong demand for their technologies. AI-related stocks, like Nvidia, rely on TSMC’s chips for growth. Concerns of an AI stock bubble are rising, mirroring the dot-com bubble of 2000. U.S. companies must deliver stronger profits to justify stock price gains.
Travelers fell 2.9%, Hewlett Packard Enterprise dropped 10.1%, while Salesforce gained 4%. J.B. Hunt Transport Services rose 22.1% after surpassing profit targets. The S&P 500 closed down 41.99 points. Oil prices swung lower after Trump’s meeting with Putin to resolve the war in Ukraine.
South Korea’s Kospi surged 2.5% on potential trade deals with the U.S. Bond market saw Treasury yields drop, with gold rising to $4,304.60 per ounce. A report showed manufacturing activity shrinking in the mid-Atlantic region. The U.S. government shutdown is delaying critical economic updates, impacting Wall Street’s trading.

Read more at Yahoo Finance: US stocks drop on worries about banks