Nasdaq Futures experienced a decline on Thursday following a session marked by volatility. The tech-heavy Nasdaq Composite concluded at 22,562.54, declining by 0.5% or 107.54 points, influenced by the underwhelming performance of major technology firms. During the trading session, the technology-focused index reached a peak increase of 216.80 points, while it also experienced a decline of 265.40 points at its lowest point. Market participants expressed ongoing concerns about credit practices and the increasing volume of non-performing loans at certain regional banks.

Simultaneously, persistent trade and tariff disputes between the United States and China, along with the U.S. government shutdown, have undermined investors’ confidence in riskier assets such as equities. All three major stock indexes concluded the trading session in negative territory. The Dow Jones Industrial Average fell 0.7%, a decline of 301.07 points, concluding at 45,952.24. Significantly, 22 of the 30 components of the index concluded in negative territory, whereas eight recorded positive outcomes. During the trading session, the blue-chip index reached a peak of 169 points above its previous close, while it also experienced a decline of 472.13 points at its lowest point. The S&P 500 declined by 0.6%, concluding the session at 6,629.07. During the trading session, the benchmark reached a peak increase of 0.6%, while it experienced a decline of 1.2% at its lowest point. Among the 11 broad sectors of the market index, nine concluded in negative territory, whereas two remained in positive territory.

The Financials Select Sector SPDR experienced a decline of 2.8%, while the Utilities Select Sector SPDR, the Communication Services Select Sector SPDR, and the Consumer Discretionary Select Sector SPDR fell by 1.1%, 1.1%, and 1%, respectively. The CBOE Volatility Index, often referred to as the fear gauge, experienced a significant increase of 22.6%, reaching 25.31, marking its highest point since May. On Thursday, trading volume reached 22.4 billion shares, surpassing the 20-session average of 20.5 billion shares. The S&P 500 achieved 29 new 52-week highs alongside 16 new 52-week lows. The Nasdaq Composite recorded 113 new 52-week highs alongside 109 new 52-week lows. The stock prices of two prominent regional banks plummeted amid significant apprehensions regarding their lending practices.

Bad loans are becoming a concern for Zions Bancorporation, National Association, and Western Alliance Bancorporation, which experienced declines of 13.1% and 10.8%, respectively, in the wake of bankruptcies involving two companies linked to the auto industry. SPDR S&P Regional Banking ETF also tanked 6.2%. In September, two companies within the auto sector, specifically First Brands and Tricolor Holdings, declared bankruptcy. On Oct. 16, the stock price of major investment bank Jefferies Financial Group Inc. plummeted 10.6% after the firm disclosed $715 million of exposure tied to First Brands.