A wave of credit-related jitters hit Wall Street, igniting a broad selloff led by financial stocks. On Thursday, the Dow, S&P 500, and Nasdaq all shed nearly 1% of their value ts2.tech. The selloff was concentrated in regional banks, where bad loan news triggered outsized damage. Zions Bancorp disclosed a surprise $50 million loan charge-off, sinking its stock by double-digits, while Western Alliance revealed it is suing a borrower over alleged fraud – news that sent its shares tumbling as well ts2.tech. Even Jefferies, an investment firm, saw its stock slide on concerns about its links to troubled lenders First Brands and Tricolor, which recently went bankrupt ts2.tech. In total, over 80% of S&P 500 companies traded down on the day ts2.tech, and the KBW regional bank index plunged 6.5% – a sign of just how hard midsize lenders were hit.
