Regional-Bank Jitters Flip Stocks Red as KRE Cracks Its 200-Day

U.S. stocks surrendered early gains and closed lower Thursday after fresh stress in regional banks reignited memories of last year’s scare. The Dow fell 300.95 points, or 0.65%, the S&P 500 lost 41.98, or 0.63%, and the Nasdaq slipped 107.54, or 0.47%, while small caps bore the brunt with the Russell 2000 down 2.10%.

The reversal gathered momentum midday as the SPDR S&P Regional Banking ETF slid more than 6% and broke below its 200-day moving average around $60, a technical breach traders read as a sign that selling pressure is broadening. The downdraft followed disclosures from Zions and Western Alliance of $110 million-plus in losses tied to First Brands Group, whose bankruptcy has exposed what some lenders describe as “phantom collateral” and overlapping claims across $12 billion-plus of borrowings under regulatory review, according to materials in the provided document.

The episode has focused attention on the nexus between regional banks and private-credit structures that operate with lighter oversight. Morningstar's DBRS unit cautioned that the fallout could include mark-to-market hits on CLOs and potential trade-credit claims for insurers, underscoring how the ripples can extend beyond banks. Jefferies estimated about $45 million of losses tied to First Brands but called them readily absorbable," while Deutsche Bank argued the stock’s selloff looks overdone.

The mood wasn’t helped by a now viral warning from JPMorgan chief Jamie Dimon: “When you see one cockroach, there are probably more.” The line has become shorthand for investor unease about hidden leverage, the document notes.

Outside financials, single-stock stories cut both ways. United Airlines topped profit expectations with Q3 adjusted EPS of $2.78 and guided Q4 EPS to $3.00–$3.50, but the shares slipped below $100 as weaker unit revenue offset cost gains; UBS and Deutsche Bank kept positive stances, according to the file. CEO Scott Kirby emphasized United’s decade of customer-experience investment: “We’ve invested in customers at every price point — from seatback screens and lie-flat Polaris seats to fast, free Wi-Fi on every plane by 2027.”

J.B. Hunt rallied earlier after a clean earnings beat—$1.76 EPS versus $1.46 expected—and progress on a $100 million cost-reduction plan prompted price-target lifts toward $180, positioning the trucker as a margin-repair story into 2026. Salesforce, meanwhile, mapped a path to $60 billion revenue and 40% margins by FY2030 around its Agentforce AI push and a $7 billion buyback, drawing favorable notes from Needham and Mizuho.

Safe-haven flows were visible in commodities: gold jumped 2.63% to $4,312.00, while crude oil slipped 1.32% to $57.50—a pairing consistent with risk-off positioning as banks dragged equities lower.

With several regionals set to report Friday, technicians say a swift KRE recovery back above $60 would help stabilize sentiment; failure could invite a test of the 200-week trendline near $55, a level associated with the 2023 trough. For now, investors are defaulting to the oldest playbook on bank headlines: sell first, ask questions later.