NEW YORK, New York - U.S. stocks turned higher on Thursday with all the major indices making ground. Howesver the optimism evaporated later in the day as all the key indices went into reverse mode. By the close they were all in the red. Regional banks took the brunt of the selling as bad loans emerged in the day's earnings reports. 

"The market is just really skittish about credit-related losses," Jed Ellerbroek, portfolio manager at Argent Capital Management, told CNBC Thursday. "The market is not very happy about the regional banks' comments, so most small-cap financials, banks are down today."

Investors locked in recent gains and weighed mixed corporate earnings alongside renewed caution over interest rate policy. All three major Wall Street indices finished in negative territory after a volatile trading session.

The Standard and Poor's 500 fell 41.99 points, or 0.63 percent, to close at 6,629.07, as losses in technology and consumer discretionary shares outweighed modest gains in defensive sectors.

The Dow Jones Industrial Average declined 301.07 points, or 0.65 percent, to 45,952.24, pressured by weakness in major industrial and financial names.

The NASDAQ Composite also slipped, losing 107.54 points, or 0.47 percent, to end at 22,562.54, as several high-growth technology stocks saw mild pullbacks following a strong start to the week.

Overall, Thursday's downturn reflected a cautious mood among investors ahead of upcoming US economic data, with traders reassessing the outlook for inflation and potential moves by the Federal Reserve later this year.

U.S. Dollar Mixed as Euro and Pound Strengthen in Thursday Trading

The U.S. dollar traded mixed against major global currencies on Thursday, as investors assessed shifting expectations around central bank policies and economic data from key markets.

The euro firmed against the greenback, with the EUR/USD pair rising 0.38 percent to 1.1691, supported by stronger economic indicators from the eurozone and a modest decline in US Treasury yields.

The British pound also advanced, with GBP/USD climbing 0.26 percent to 1.3434, amid improving investor sentiment toward the UK economy and a softer US dollar tone in afternoon trading.

Meanwhile, the U.S. dollar weakened against the Swiss franc, with USD/CHF falling 0.49 percent to 0.7926, as traders sought traditional safe-haven assets amid geopolitical uncertainty. The US dollar also declined versus the Japanese yen, with USD/JPY slipping 0.42 percent to 150.40.

In commodity-linked currencies, the Australian dollar eased, with AUD/USD down 0.45 percent to 0.6482, reflecting pressure from softer metals prices and cautious risk sentiment. The New Zealand dollar was largely steady, with NZD/USD inching up 0.01 percent to 0.5724.

The U.S. dollar strengthened slightly against the Canadian dollar, with USD/CAD rising 0.09 percent to 1.4050, supported by a pullback in crude oil prices.

Overall, Thursday's foreign exchange trading showed a broadly balanced market, with the dollar losing ground

European and Asian Markets Advance as Investor Confidence Grows

Global stock markets closed mostly higher on Thursday, buoyed by renewed investor optimism and positive momentum across European and Asian trading floors.

In Canada, the S&P/TSX Composite Index dropped 178.32 points, or 0.58 percent, to 30,458.80, weighed down by declines in energy and materials shares amid softer commodity prices.

In the UK and Europe,, the FTSE 100 in London edged up 11.34 points, or 0.12 percent, to finish at 9,436.09, supported by gains in energy and financial stocks. Germany's DAX rose 90.82 points, or 0.38 percent, to 24,272.19, while France's CAC 40 climbed 111.59 points, or 1.38 percent, to 8,188.59, marking one of the region's strongest performances of the day.

The Euro STOXX 50 advanced 46.98 points, or 0.84 percent, to 5,652.01, and the Euronext 100 gained 15.91 points, or 0.94 percent, to 1,699.78. Belgium's BEL 20 closed higher as well, up 32.05 points, or 0.64 percent, at 5,010.85.

Across Asia, trading sentiment was broadly positive. Japan's Nikkei 225 jumped 605.07 points, or 1.27 percent, to 48,277.74, while South Korea's KOSPI surged 91.09 points, or 2.49 percent, to 3,748.37, reflecting strong tech sector gains. Taiwan's TWSE Index added 372.16 points, or 1.36 percent, to 27,647.87, and India's S&P BSE Sensex climbed 862.23 points, or 1.04 percent, to 83,467.66.

Australia's markets also strengthened, with the S&P/ASX 200 gaining 77.50 points, or 0.86 percent, to close at 9,068.40, and the All Ordinaries advancing 76.90 points, or 0.83 percent, to 9,375.90. New Zealand's S&P/NZX 50 rose 81.70 points, or 0.61 percent, to 13,389.10.

Elsewhere, Hong Kong's Hang Seng Index slipped modestly by 22.09 points, or 0.09 percent, to 25,888.51, and Singapore's STI Index dipped 12.22 points, or 0.28 percent, to 4,356.20. Malaysia's KLSE was little changed, inching up 0.74 points, or 0.05 percent, to 1,612.29, while Indonesia's IDX Composite improved 73.58 points, or 0.91 percent, to 8,124.76.

In the Middle East, Israel's TA-125 Index declined 26.75 points, or 0.80 percent, to 3,298.53, while Egypt's EGX 30 posted a slight gain of 23.20 points, or 0.06 percent, to 37,677.20.

South Africa's Top 40 Index rose 118.07 points, or 1.83 percent, to 6,584.24, and China's Shanghai Composite Index edged up 4.02 points, or 0.10 percent, to 3,916.23.

Overall, Thursday's trading reflected cautious optimism, with investors responding positively to improving economic indicators and steady corporate earnings across multiple regions.

Related stories:

Wednesday 15 October 2025 | Wall Street shrugs off shutdown, China trade concerns | Big News Network.com

Tuesday 14 October 2025 | China-U.S. trade tensions drive down U.S. markets, but Dow edges higher | Big News Network.com 

Monday 13 October 2025 | Dow Jones surges 548 points in solid market recovery | Big News Network.com