The 30-stock index plummeted 372.58 points, or 1.1%, to commence Thursday trading at 33,158.83, following a lower-than-expected wholesale inflation report and earnings from Disney
The S&P 500 index dipped 25.98 points to 4,111.66.
The tech-heavy NASDAQ gave back 29.92 points to 12,276.53.
Disney shares fell more than 5% after the media giant released its fiscal second-quarter results. While higher prices helped its streaming division to narrow its losses, it dealt a harsh blow to subscriber growth. The company also announced it would take on impairment charges of $1.5 billion to $1.8 billion as it removes more content from its streaming platforms.
Investor worry over regional banks once again flared up. PacWest Bancorp, the latest troubled bank in focus, said Thursday in a 10Q filing that deposits fell 9.5% last week. PacWest shares dropped another 22% Thursday. PacWest added that the bank has access to $15 billion in immediate liquidity, if needed.
The producer price index, the Federal Reserve’s preferred inflation gauge that measures wholesale prices, increased just 0.2% in April.
Economists polled by Dow Jones estimated PPI advanced 0.3% last month. The PPI data follows the consumer price index report from Wednesday, which showed inflation rose 4.9% year-over-year, below expectations.
Initial jobless claims grew by 22,000 for the week ending May 6 to 264,000, the U.S. Department of Labor said on Thursday. The latest jobless data was the highest reading since Oct. 30, 2021.
Prices for the 10-year Treasury moved forward, lowering yields to 3.37% from Wednesday’s 3.44%. Treasury prices and yields move in opposite directions.
Oil prices tumbled $1.49 to $71.07 U.S. a barrel.
Gold prices parted ways with 17 dollars to $2,020.10 U.S. an ounce.