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Futures: Dow up 0.18%, S&P 500 up 0.02%, Nasdaq down 0.17%

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Trump says 100% tariffs on China not sustainable

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Eli Lilly ( LLY ) falls after Trump vows weight-loss drug price

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(Updates before markets open)

By Sukriti Gupta and Twesha Dikshit

Oct 17 (Reuters) -

Wall Street's main indexes were poised for a mixed open on

Friday after U.S. President Donald Trump said his meeting with

Chinese counterpart was still on, while worries over credit

risks at regional banks kept investors on edge.

Futures had tumbled earlier on Friday, following a rout

in bank stocks in the previous session when the SPDR S&P

regional banking ETF registered its steepest one-day

drop in more than six months in the previous session.

The decline was triggered by Zions Bancorporation

disclosing a $50 million loss tied to two commercial

and industrial loans, while Western Alliance said it had

initiated a lawsuit alleging fraud by Cantor Group V, LLC.

The selloff rekindled concerns over lax lending

standards in a sector already grappling with two auto

bankruptcies, more than two years after the collapse of Silicon

Valley Bank.

However, the SPDR S&P regional banking ETF rose 1.9%

premarket after positive quarterly results from some regional

banks.

"Possibly because they were oversold yesterday and

because we're now getting positive earnings from these regional

banks that confirm the kind of earnings growth that we saw with

the larger global banks earlier in the week. I think that is

helping to buoy investor optimism," said Sam Stovall, chief

investment strategist at CFRA.

Truist Financial ( TFC ) and Regions Financial ( RF )

added 2.5% and 2.1%, respectively after reporting a higher

profit. Fifth Third Bancorp ( FITB ) gained 2.6%.

Zions shares rose 4.4%, while Western Alliance gained

3.8% before the bell.

On the trade war front, Trump

said

his proposed 100% tariff on goods from China would not be

sustainable and that he would meet President Xi Jinping in two

weeks.

"Most people realize that Trump has to soften his tone

if he wants to get any sort of a compromise out of China ...

(it is) encouraging that the president is sounding a bit more

dovish in his stance toward China," said CFRA's Stovall.

At 08:39 a.m. ET, Dow E-minis were up 82 points, or

0.18%, S&P 500 E-minis were up 1.25 points, or 0.02%,

and Nasdaq 100 E-minis were down 42.25 points, or 0.17%.

Optimism around AI and expectations of U.S. interest rate

cuts have propelled Wall Street to record highs this year.

However, AI-related tech stocks, which were among the biggest

contributors to the rally, also slipped on Friday.

Among other stocks, Eli Lilly ( LLY ) fell 3.8% after Trump

said he would bring down prices of weight-loss drugs.

Robust earnings from big U.S. banks this week have set an

upbeat tone for the start of the third-quarter reporting season.

But with equity valuations already elevated, investors are

treading cautiously.