US stocks fell Thursday afternoon after new inflation data were lower than expected, but concerns about regional banks continued to weigh on the market.
The S&P 500 (^GSPC) is down 0.42% at 2pm ET, while the Dow Jones Industrial Average (^DJI) is down 305 points (0.91%). The tech-rich Nasdaq Composite Index (^IXIC) was broadly flat.
Shares of regional bank PacWest fell about 22% after the company said in an SEC filing that deposits fell 9.5% in the first week of May.
Shares of Disney (DIS) fell more than 8% on Wednesday night after it reported earnings that were slightly lower than analysts had expected. A price hike at media and entertainment conglomerate Disney+ helped make up for lower-than-expected subscriber numbers. The report comes amid an ongoing feud with Florida Governor Ron DeSantis as Disney implements an extensive restructuring plan.
On the other earnings side, Robinhood (HOOD) stock rose 5% after the company reported better-than-expected earnings in the first quarter after Wednesday’s close. The financial services platform also announced that it will launch 24-hour trading services for certain securities.
Several companies, including Sonos (SONO), reported results before the opening bell on Thursday. According to Sonos CEO Patrick Spence, a technology equipment maker that makes consumer products such as Bluetooth speakers has seen sales and adjusted EBITDA drop in the wake of “softening consumer demand.” has lowered its full-year forecast. Shares plunged 23%, their biggest in nine months.
Shares also fell on Thursday as fitness company Peloton (PTON) recalled more than 2 million bicycles. Shares fell more than 8% on the news.
Producer price inflation in April was weaker than economists had expected on Thursday morning. Prices rose 0.2% on a month-to-month basis and 2.3% on a year-on-year basis. Economists had expected producer prices to rise 0.3% on a monthly basis and 2.5% on a yearly basis in April, according to Bloomberg consensus data. Producer prices in March fell 0.5% on a month-to-month basis and rose 2.7% on a year-on-year basis.
The print comes after Wednesday’s Consumer Price Index report showed April’s lowest annual pace in two years, according to the latest data from the Bureau of Labor Statistics. Markets, which had priced in about a 78% chance of a pause in rate hikes before the CPI announcement, are now pricing in a 93% chance that rate hikes will be paused in June, according to the CME FedWatch tool.
“This report should give the Fed comfort in keeping its June hold,” Bank of America’s team of economists said in a note Wednesday. “But keep in mind that we have one more employment and inflation data before the June meeting.”
On the labor front, 246,000 initial unemployment claims were filed in the week ending May 6, better than expected. The forecast was for 245,000, according to Bloomberg consensus data.
Josh is a reporter for Yahoo Finance.
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