U.S. regional banks dive as markets fall in correction territory on trade war fears

Shares of regional U.S. banks dive tracking market-wide selloff in equities due to trade war worries

US Bancorp USB.N, Fifth Third Bancorp FITB.O, M&T Bank MTB.N, Keycorp KEY.N and Western Alliance WAL.N fell, with Comerica CMA.N leading the declines with a nearly 7% fall

KBW regional banking index .KRX fell 4.1% to a near two-month low

Wall Street's main indexes fell into correction course, as investors feared that an escalating trade war between the U.S. and its partners could damage the economy

Investors are pricing in that the surcharges will fan inflation pressures, dampen demand and eat into corporate profits at a time when recent data has triggered fears of a stalling economy