Futures tied to the Dow Jones Industrial Average rebounded early Friday as traders tried to move past credit concerns that sparked a big sell-off in regional banks Thursday.
Stocks that led Thursday’s bank sell off were rallying back in premarket trading, boosting futures, as Wall Street defended the shares and traders bet any bad credit bets were one-offs and not part of a bigger crisis.
Better-than-expected earnings Friday from Fifth Third Bancorp also assuaged worries, sending the stock higher by 2% in early trading.
The big major banks dragged down Thursday also bounced back, with J.P. Morgan and Bank of America both in the green early Friday.
The regional bank ETF was up by 2% early Friday.
Stocks remain on track for weekly gains despite Thursday’s decline.
The S&P 500 is up nearly 1.2% after a strong start to the third-quarter earnings. The Dow has added about 1% week to date, while the Nasdaq has gained 1.6%.
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