Trade fears lead to stock declines

U.S. stocks fell following declines in Asia and Europe as Daimler’s profit warning fed into investor concern over the outlook for global trade and growth. The S&P 500 Index dropped toward its lowest level of the day late in the trading session, and the Dow Jones industrial average careened toward its eighth straight drop even after a report that senior White House officials are trying to restart talks with China to avoid a trade war. A Supreme Court ruling that states can collect sales tax from online retailers rattled companies from Amazon.com to eBay.

Big banks pass stress tests

The nation’s biggest banks are strong enough to continue lending if the economy plunges into a severe downturn, according to an assessment by the Federal Reserve on Thursday that could fuel Wall Street’s calls to further relax financial regulations. The results of the first phase of the Fed’s annual “stress tests” showed that the country’s banks have more than enough capital to survive a significant economic downturn. Still, two Wall Street giants — Goldman Sachs and Morgan Stanley — came close to falling short on one of the Fed’s financial-health gauges.

— From wire reports