US regional banks fall as tariff rout deepens

M&T Bank

07/04/2025 12:40

** Shares of regional U.S. banks fall premarket, extending losses for the third day after President Trump last week announced tariffs on dozens of countries, prompting retaliation from China

** The slump in regional bank stocks tracks the broader market, with the S&P 500 index poised to confirm a bear market due to the escalating trade war .N

** Banks are expected to take a hit as lower consumer confidence could curb spending and loan demand, while dealmaking and capital markets activity is expected to be weighed by tariff-driven uncertainty

** M&T Bank MTB.N, FB Financial FBK.N, Flagstar Financial FLG.N, Comerica CMA.N, Western Alliance WAL.N and Citizens Financial CFG.N  fall between 2.4% and 5.3%

** KBW Regional Banking Index .KRX has fallen 13.1% since Trump's tariffs announcement

(Reporting by Ateev Bhandari in Bengaluru)

((ateev.bhandari@thomsonreuters.com))