Stocks fall as investors weigh inflation data, turmoil at regional banks: stock market news today

US stocks fell on Thursday afternoon as fresh inflation data came in weaker than expected, but regional banking concerns continued to weigh on markets.

The S&P 500 (^GSPC) was down 0.42% as of 2 p.m. ET, while the Dow Jones Industrial Average (^DJI) lost 305 points or 0.91%. The tech-heavy Nasdaq Composite (^IXIC) was mostly flat.

Regional bank PacWest’s stock plummeted about 22% after the company’s announcement in an SEC filing Its deposits fell 9.5% in the first week of May.

Disney shares (DIS) fell more than 8% after the earnings received were announced a little weaker than analysts had hoped on Wednesday night. The media and entertainment group’s price hikes for Disney+ helped offset below-expected subscriber numbers. The report comes as Disney is implementing a major restructuring plan ongoing struggle with Florida Governor Ron DeSantis.

Elsewhere in the results, shares of Robinhood (HOOD) rose 5% as the company reported better-than-expected first-quarter sales after Wednesday’s closing bell. The financial services platform also announced it would launch 24-hour trading services for certain securities.

Several companies reported earnings ahead of Thursday’s opening bell, including Sonos (SONO). The tech equipment maker, which makes consumer products like Bluetooth speakers, lowered its full-year revenue and adjusted EBITDA forecasts due to “softening consumer demand,” according to Sonos CEO Patrick Spence. Shares plummeted 23%, the sharpest drop in nine months.

peloton (PTON) share also fell on Thursday as a fitness company recalled more than two million bicycles. Shares fell more than 8% on the news.

Producer price hikes in April were weaker than economists had expected on Thursday morning. Prices rose 0.2% monthly and 2.3% annually. Economists had expected producer prices to rise 0.3% on a monthly basis and 2.5% on an annual basis in April, according to Bloomberg consensus data. In March, producer prices fell 0.5% on a monthly basis and rose 2.7% on an annual basis.

The story goes on

The pressure came after Wednesday’s CPI report showed prices rising at their slowest annual pace in two years in April, according to the latest data from the Bureau of Labor Statistics. After pricing in a roughly 78% probability of a pause ahead of the CPI release, markets are now pricing in a 93% probability of a pause in interest rates in June. according to the CME Fed Watch Tool.

“This report should keep the Fed feeling comfortable in June,” Bank of America’s team of economists said in a statement on Wednesday. “Note, however, that we have one more jobs report and one more inflation report ahead of the June meeting.”

On the labor front, initial jobless claims for the week ended May 6 beat expectations at 246,000. 245,000 were expected, according to Bloomberg consensus data.

Josh is a reporter for Yahoo Finance.

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