Pass Me the Raid. Fears that Jamie Dimon’s credit “cockroaches” were turning into a bigger infestation gripped markets on Thursday, sending volatility higher and stocks lower.

The Dow Jones Industrial Average was off 0.7%, the Nasdaq Composite fell 0.5%, and the S&P 500 shed 0.6%.

Financials were some of the worst performers in the S&P, with the SPDR S&P Bank ETF down 5.4%.

The sector was partially afflicted by new worries about loans by regional banks, tied to comments made by Dimon, CEO of JPMorgan Chase, earlier this week. In an earnings call, Dimon mentioned there was growing risks to credit markets, referring to the recent bankruptcies of two auto-industry companies: Tricolor Holdings and First Brands. “When you see one cockroach, there’s probably more,” he said.

Other banks have, indeed, found more such bugs, reports my colleague, Teresa Rivas:

Western Alliance, another regional bank, said it was suing a borrower for fraud who failed to provide collateral for a loan.

Analysts caution against jumping to conclusions about the broader sector and note that these may be isolated incidents. Still, that didn’t stop investors from worrying. The Cboe Volatility Index, or VIX, reached as high as 25.43 this afternoon, its highest intraday level since May.

To quote my colleague Paul La Monica, “it looks like bank investors may need a can of Raid.”

News out of Washington was adding to the volatility after a vote to fund the federal government failed for the tenth time. At least 60 votes are needed to clear the U.S. Senate—the latest Republican-backed bill got just 51. A stand-alone procedural bill to fund the Defense Department also failed to pass.

The Hot Stock: J.B. Hunt Transport Services +22.1%
The Biggest Loser: Kenvue -13.2%

Best Sector: Energy +0.1%
Worst Sector: Financials -2.8%

High home prices and forbidding mortgage rates have made homeownership a distant dream for many young Americans. Today’s young adult is less likely to own a home than in the past, with the median age of a first-time buyer rising to a record 38 in 2024, according to the National Association of Realtors. The number of housing units occupied by renters is at the highest level since at least 2000—and growing at a faster rate than homeowner households.

It’s all having an impact on the home furnishings industry, given that furniture purchases are often tied to buying a house. Buyers historically have spent more than renters on furniture: Owners tend to prioritize quality and cohesion, and often invest in furnishing multiple rooms. Renters are more pragmatic, typically buying single items at low to midlevel price points from multiple vendors. Sales at furniture and home-furnishings stores fell 2% year over year in 2024, according to Census Bureau data, and have remained soft throughout 2025.

But even in tough environments there’s opportunity—if you know where to look. Many young renters are now treating rental properties like starter homes, spending thousands of dollars on decorating and furnishing those homes.

That opens up a market that had been brushed aside by the furniture industry. Indeed, retailers that have catered to rental customers by selling smaller-size, multifunctional furniture and home accessories at a variety of prices, such as Wayfair and Williams-Sonoma, have bucked the worst of the furniture industry’s slowdown in recent quarters.

Read more from me and my colleague Shaina Mishkin about how two furniture companies are adapting.

American Express, Fifth Third Bancorp, Huntington Bancshares, Regions Financial, SLB, State Street, and Truist Financial report quarterly results tomorrow.

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