Wall Street fell today, with signs of weakness in regional banks spooking investors already on edge over China-U.S. trade tensions.

Regional bank Zions Bancorporation dropped 13% after disclosing an unexpected loss on two loans in its California division, adding to growing investor unease about hidden credit stress as lenders navigate economic uncertainty with interest rates still relatively high.

Also increasing worries about regional banks, Western Alliance said it initiated a fraud lawsuit against one of its borrowers. Its stock slumped 11%.

With the S&P 500 recently at record highs, investors were also watching for developments between Washington and Beijing after their trade war escalated last week.

President Donald Trump has threatened 100% tariffs on China starting November 1, a

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