Wall Street stocks fell on Thursday on fears that private credit problems may weigh on US regional banks, adding to concerns about trade tensions and a government shutdown.

After opening higher, US equities tumbled into the red around midday and lingered in negative territory thereafter.

All three major US indices finished lower. The S&P 500 declined 0.6 percent, to 6,629. The Nasdaq slipped 0.5 percent, to 22,562, while the Dow Jones fell 0.7 percent, to 45,952.

That came after a positive day on leading Asian and European bourses, including Paris, which climbed after French Prime Minister Sebastien Lecornu survived two confidence motions.

The US private banking market has been in focus following bankruptcies in recent weeks of two auto-related enterprises, the auto parts company First Brands and the sub-prime lender Tricolor.

Shares of Salt Lake City-based Zions Bancorp plunged 13.1 percent after the company disclosed a pair of problem loans to businesses with "apparent misrepresentations and contractual defaults," it said in a securities filing that announced a US$50 million hit on the matter in the third quarter.

Other mid-sized and regional banks also fell, including M&T Bank, Comerica and Fifth Third Bancorp, all of which lost between four and seven percent.

Investors are "extrapolating" the instances of known problem loans to the potential to ensnare more banks, said Art Hogan of B Riley Wealth Management.

The problem with banks is the "story of the day at a point when investors are already worried about a lot of other things," Hogan said.

Among individual companies, Nestle shares surged more than nine percent after the Swiss food giant announced that it will cut 16,000 jobs worldwide over the next two years.

United Airlines fell 5.6 percent after reporting that earnings had dipped on higher costs. The carrier projected better than expected fourth-quarter profits on strengthening demand.

But Briefing.com noted that United's capacity additions could dent results if macro conditions "soften." (AFP)