US pre-open: Futures slip as bank loan concerns dent risk appetite

(Sharecast News) - Wall Street futures were firmly in the red ahead of the opening bell on Friday, with investor sentiment weighed down by renewed concerns over regional banks' lending practices. As of 1230 BST, Dow Jones futures were down 0.54%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.84% and 1.01% lower, respectively.

The Dow closed 301.07 points lower on Thursday, extending modest losses recorded in the previous session, with bank stocks heading south late in the day after regional banks Zions and Western Alliance both disclosed bad loans, fuelling fears that similar issues could arise elsewhere.

Concerns surrounding the state of regional banks were somewhat eased after Fifth Third Bancorp posted better-than-expected quarterly numbers. However, shares in AI beneficiaries Nvida and Oracle headed south as risk-averse traders lowered their exposure to tech stocks, while gold futures rose roughly 1% to trade above $4,300 per ounce before the open.

As far as Friday was concerned, trade tensions, lofty valuations linked to the AI boom, and the ongoing Federal government shutdown continued to weigh on sentiment prior to the open on Friday.

Now in its third week, the shutdown has led to an indefinite suspension of key economic data releases from federal agencies, leaving investors with limited visibility on the macro backdrop.

On Friday's macro slate, September industrial production and capacity utilisation figures will be published at 1415 BST.

In terms of earnings, American Express posted Q3 earnings that beat expectations, thanks to a long-anticipated Platinum credit card refresh in September. American Express reported $421bn in billed business for the third quarter, ahead of consensus expectations of $415.2bn.



Reporting by Iain Gilbert at Sharecast.com