US stocks ended a volatile week with mixed performance as President Donald Trump’s comments on trade helped ease market anxiety. The S&P 500 slipped 0.3%, while the NASDAQ 100 dropped 0.4%. The Dow Jones Industrial Average remained nearly unchanged.
The regional banking sector outperformed, with the SPDR S&P Regional Banking ETF climbing 0.8%. Zions Bancorp rose 2.6%, and Western Alliance Bancorp gained 0.9% following steep losses earlier in the week.
Regional lenders rebounded after recent declines linked to concerns about credit quality. Robust earnings from Truist Financial Corporation, Regions Financial Corporation, and Fifth Third Bancorp have bolstered investor sentiment, while Ally Financial experienced considerable demand for automobile loans.
Analysts noted that the sector’s decline was overextended, prompting Baird to upgrade Zions to an outperform rating, citing its enhanced fundamentals. RBC Capital Markets highlighted that regional banks remain well-capitalized and adequately reserved for potential credit risk losses.