Catenaa, Friday, October 17, 2025- US bank stocks were steady on Friday after they dragged the market down on Thursday amid concerns about poor lending practices, after some lenders disclosed bad loans.
US stock markets were rattled on Thursday. Banking stocks were hit hard, with positive earnings reports in the sector unable to offset the apprehension.
The concern builds on pre-existing unease over lending following the bankruptcy of two auto-related firms this year, which prompted a call from JP Morgan boss Jamie Dimon that “when you see one cockroach, there are probably more.”
Shares of major US lenders were steady on Friday, with JP Morgan trading 0.1% down, Citi over 0.5% and Bank of America rose over 0.8%.
Some banks listed in Europe and the Asia-Pacific region also faltered during the trading day, with financial companies having exposure to US markets being particularly hard hit.
It comes after shares of America’s regional lenders and investment bank Jefferies sold off on Thursday on news of poor lending practices.
Zions Bancorporation gained over 2.5% on Friday despite the fall of 13% on Thursday, while Western Alliance Bancorp gained over 2.8% after it lost more than 10%.
Big US banks have largely reported strong earnings in recent days, but their shares have performed well. With valuations across equity markets already sky-high, nervous investors are watching closely.
The banking sector has been a bright spot in the European equities rally this year, with its index gaining more than 50% over the course of 2025.
