5 things to know before the stock market opens Friday

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Here are five key things investors need to know to start the trading day:

Stocks dropped yesterday amid mounting fears on Wall Street about the prevalence of bad loans, and what it means for a slew of regional banks. That’s led to some “cockroach” hunting, as investors race to assess the health of financial institutions’ lending businesses.

Let’s break this down:

• Earlier this week, JPMorgan CEO Jamie Dimon warned that there could be more “cockroaches” out there, in reference to the collapses of auto parts maker First Brands and subprime car lender Tricolor Holdings.
• Dimon appeared to be invoking the cockroach theory, which suggests that bad news for one company can lead to several other negative disclosures.
• Shares of Jefferies, which has exposure to First Brands, dropped more than 10% yesterday. Zions, which earlier in the week said it had to take a large charge on bad loans, closed down 13%. Western Alliance said a borrower committed fraud and ended the session down nearly 11%.
• Regional bank stocks tanked yesterday as a result, in turn driving down the broader market. Bank credit concerns also dragged on the European markets today.
• The closely followed 10-year U.S. Treasury yield plunged to levels last seen in early April, when President Donald Trump’s unveiled his steep tariff policy.
• Beyond banking, investors continued to monitor the U.S.-China trade dispute. China’s Ministry of Commerce accused the U.S. of creating “panic” over its rare earth export controls and said it was open to trade talks.
• U.S. stock futures fell this morning, but are well off their lows. Follow live markets updates here.

John Bolton, a former national security advisor to President Donald Trump, was indicted yesterday by a federal grand jury on charges of mishandling classified information. Bolton is the third Trump adversary to face criminal charges in recent weeks, following the indictments of former FBI Director James Comey and New York Attorney General Letitia James.

Meanwhile in Washington, a bill to fund the military during the government shutdown failed in the Senate yesterday. The vote came hours after senators voted down funding legislation for the 10th time. United Airlines CEO Scott Kirby told CNBC yesterday that bookings could start slowing if the government doesn’t reopen soon.

You’re likely already feeling the economic impact of Trump’s tariff policy, according to S&P Global.

The firm’s analysis found the levies will run global businesses nearly $1.2 trillion (yes, trillion) this year. Even under conservative estimates, S&P said two-thirds of that cost is expected to be passed down to consumers.

While we’re on the subject of tariffs’ economic impact: The U.S. budget deficit in 2025 shrunk by slightly more than 2%, compared with the 2024 fiscal year. As CNBC’s Jeff Cox notes, revenue from Trump’s tariffs helped mitigate some government spending. Still, the federal government’s shortfall sits at $1.78 trillion.

Apple will soon announce a deal valued at $140 million annually for F1’s U.S. media rights, sources told CNBC’s Alex Sherman. The partnership will help the technology giant build out its sports streaming portfolio, which already includes Major League Soccer and MLB content.

In an interview this week, Eddy Cue, Apple’s senior vice president of services, said Apple has “love” for F1. Cue also said the modern sports watching experience has “gone backwards” as so many different streaming services get in the game.

The parent company of sunglasses maker Ray-Ban has a specific company to thank for its recent performance: Meta.

EssilorLuxottica said a sizable amount of its revenue growth in the third quarter was tied to its partnership with the big tech company to develop and sell smart glasses. Stefano Grassi, EssilorLuxottica’s finance chief, called the Meta products a “lift” for the business.

Speaking of Meta, Oracle‘s shares were able to buck yesterday’s market downturn after the company confirmed a cloud deal with the Facebook parent.

Here are some stories we’d recommend making time for over the weekend:

— CNBC’s Hugh Son, Sarah Min, Spencer Kimball, Jordan Novet, Jonathan Vanian, Ari Levy, Alex Sherman, Jeff Cox, Leslie Josephs, Dan Mangan and Lillian Rizzo contributed to this report. Josephine Rozzelle edited this edition.