07:39 AM EDT, 10/17/2025 (MT Newswires) -- The benchmark US stock measures were tracking in the red before Friday's open amid investor concerns about regional banks' exposure to bad loans and credit quality.

The S&P 500 fell 1.1%, the Dow Jones Industrial Average decreased 0.8% and the Nasdaq was off 1.3% in premarket activity. The indexes finished the previous trading session lower.

Regional lenders Zions Bancorporation (ZION) and Western Alliance Bancorp ( WAL ) recently disclosed problems with bad loans, fueling concerns about potential challenges in the credit markets. Zions disclosed a $50 million charge-off amid a review that uncovered "apparent misrepresentations and contractual defaults" regarding two commercial and industrial loans, while Western Alliance said it launched a lawsuit against Cantor Group V in August for alleged fraud related to a note finance revolving credit facility.

Shares of Zions and Western Alliance slid 1.1% and 2.9% pre-bell, respectively, after closing Thursday down 13% and 11%. CSX (CSX) increased 2.3% as the rail-based freight transportation supplier reported better-than-expected third-quarter results.

Some of the major companies reporting their latest quarterly results early Friday include Fifth Third (FITB), Huntington Bancshares ( HBAN ) , Regions Financial ( RF ) , Ally Financial ( ALLY ) , Comerica ( CMA ) , American Express ( AXP ) , Truist Financial ( TFC ) and Schlumberger (SLB).

Treasury yields dropped in premarket action, with the two-year rate retreating 4 basis points to 3.39% and the 10-year rate down 2.5 basis points to 3.95%.

The federal government shutdown entered its 17th day on Friday. The stoppage is expected to delay the release of the housing starts and permits and import and export prices reports for September, originally scheduled to be out on Friday.

The industrial production report is due at 9:15 am ET, followed by the weekly Baker Hughes oil-and-gas rig count at 1 pm. Federal Reserve Bank of St. Louis President Alberto Musalem is scheduled to speak at 12:15 pm.

The Federal Reserve should cut interest rates by 25 basis points later this month, Governor Christopher Waller said Thursday, while his colleague, Stephen Miran, pushed for a more aggressive easing stance.

"Amid a government shutdown and a lack of updated data, Fed officials are unable to draw much of a conclusion about much of anything and therefore should arguably remain on hold, waiting for additional information before potentially further compounding a policy error with a second-round rate cut if unwarranted by the evolution of inflation and hiring conditions," Stifel Chief Economist Lindsey Piegza said Thursday.

China's recent decision to expand its rare earths export controls is a legitimate move and is meant to prevent rare earths' illegal outflow and misuse, the Global Times reported Thursday, citing Chinese Ministry of Commerce spokesperson He Yongqian. However, He Yongqian noted that China was open to trade negotiations with the US.

West Texas Intermediate crude oil declined 1.2% to $56.79 a barrel before the open. US commercial crude stockpiles unexpectedly increased last week, the Energy Information Administration said Thursday.

Gold rose 1.2% to $4,354 per troy ounce, while bitcoin slid 3.6% to $104,260.