By Subrat Patnaik, Julien Ponthus and Neil Campling

(Bloomberg) -- US bank stocks extended their slide in premarket trading on Friday, after a sharp selloff in regional lenders that reverberated through Asian and European trading hours.

Shares of Bank of America Corp., Citigroup Inc., Morgan Stanley and Wells Fargo & Co. slid more than 1.5% at 4:40 a.m. New York time. The drops come after regional bank stocks tumbled on Thursday, led by declines at Zions Bancorp and Western Alliance Bancorp, which said they were the victims of fraud on loans to funds that invest in distressed commercial mortgages.

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There was limited volume in shares of regional banks at the premarket open on Friday, though Zions shares dipped 1.8%. The S&P Regional Banks Select Industry Index fell 6.3% on Thursday in a selloff that drew comparisons to April’s tariff-induced rout and the steep declines that had rocked the sector during a crisis in 2023.

Attention will quickly turn to the latest crop of earnings for the group, with several large regional banks set to report before the bell in New York.

“Investors are logically worried, which is always the case in situations like these, that they haven’t identified where the risks lie,” said Leonard Cohen, chief executive officer of Ginjer AM in Paris.

The regional bank selloff on Thursday came as the high-profile collapses of auto lender Tricolor Holdings and car-parts supplier First Brands Group already had traders on edge. A comment by JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon comparing those issues to “cockroaches” had added to credit jitters.

“We see the losses as idiosyncratic and lenders will need to tighten processes, but the evidence is not there that this is anything else,” said Nick Brind, fund manager of Polar Capital Global Financials Trust. “We believe this selloff will be short-lived, all things being equal.”