Stocks Tumble as Credit Fears Drive Rush to Havens: Markets Wrap
(Bloomberg) — Stocks extended declines as doubts over the credit health of regional US banks drove traders to cut down on risk, capping a volatile week that exposed the vulnerability of markets near record levels. Gold and bonds were major beneficiaries as investors rushed for havens.
The S&P 500 headed for a second day of losses, with futures down 1.2% after two regional banks said they were victims of suspected fraud on loans tied to distressed property funds. European and Asian markets mirrored the US selloff. A gauge for European banking stocks fell more than 2%.
Benchmark US bonds were set for their best week in more than a month, with 10-year yields falling another four basis points to 3.94% on Friday. Gold extended its record rally beyond $4,350 an ounce, while the yen and Swiss franc led gains among major currencies against the dollar.
The moves underscored mounting concerns about the US credit market, offering the clearest sign yet of the nervous undercurrents running through Wall Street. They add to a growing list of investor worries, from the looming US government shutdown to fears of an AI bubble and renewed US–China trade tensions.
“This very much looks like end-of-cycle symptoms, where we can see hints of complacency in lending standards,” said Raphael Thuin, head of capital markets strategies at Tikehau Capital. “With this year’s rally and costly valuations, the temptation to take profits and secure year-to-date gains is high. Market moves are also likely to be amplified today as we’re closing into the weekend.”
In trade news, the White House is poised to ease tariffs on the US auto industry, a move that would deliver a major win for carmakers that have aggressively lobbied to stem the fallout from record-level import duties.
What Bloomberg strategists say…
It may be too early to be drawing serious comparisons with previous meltdowns, but going into a weekend when more cockroaches may crawl out it isn’t surprising that investors are edgy.
— Mark Cranfield, MLIV. For full analysis, click here.
President Donald Trump and his Russian counterpart Vladimir Putin agreed to meet in Budapest during a two-hour phone call. The conversation took place a day before Trump’s White House meeting with Ukrainian President Volodymyr Zelenskiy.
Oil headed for a third weekly decline as investors focused on oversupply and the fallout from renewed US-China trade tensions.
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 1.4% as of 8:14 a.m. London time S&P 500 futures fell 1.2% Nasdaq 100 futures fell 1.3% Futures on the Dow Jones Industrial Average fell 0.7% The MSCI Asia Pacific Index fell 1% The MSCI Emerging Markets Index fell 1.2% Currencies
The Bloomberg Dollar Spot Index was little changed The euro rose 0.2% to $1.1709 The Japanese yen rose 0.6% to 149.50 per dollar The offshore yuan was little changed at 7.1307 per dollar The British pound was little changed at $1.3446 Cryptocurrencies
Bitcoin fell 1.4% to $106,338.2 Ether fell 1.8% to $3,783.41 Bonds
The yield on 10-year Treasuries declined four basis points to 3.94% Germany’s 10-year yield declined four basis points to 2.53% Britain’s 10-year yield declined three basis points to 4.47% Commodities
Brent crude fell 0.7% to $60.61 a barrel Spot gold rose 0.6% to $4,354.60 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Anand Krishnamoorthy.
©2025 Bloomberg L.P.
