The Dow Jones Industrial Average fell 326 points on Wednesday after April's Consumer Price Index --- a key marker of inflation -- increased 8.3%, higher than analysts' expectations. Photo by John Angelillo/UPI | License Photo
May 11 (UPI) -- U.S. markets declined Wednesday as investors weighed the latest inflation data and Disney reported quarterly earnings after the bell.
The Dow Jones Industrial Average dropped 326.63 points, or 1.02%, the S&P 500 fell 1.65% and the Nasdaq Composite closed down 3.18%.
The blue-chip Dow fell for the fifth consecutive day and the S&P hit an intraday low of 3,928.82, closing down more than 18% from its 52-week high and more than 17% since the beginning of 2021.
Wednesday's losses came as April's Consumer Price Index increased by 8.3% over the past 12 months, higher than analysts' expectations of an 8.1% increase year-over-year.
"With the annual rate ticking down from 8.5% to 8.3%, it can be tempting to say we've seen the peak, but we've also been head-faked before as was the case last August," Bankrate chief financial analyst Greg McBride said.
After release of the report, the 10-year treasury yield briefly climbed back above 3%, but ultimately traded at 2.948%.
Tech shares struggled Wednesday amid the rising treasury yields as Apple stock fell 5.18%, Facebook parent, Meta, dropped 4.51%, Salesforce declined 3.52% and Microsoft slid 3.32%
Conversely, Visa stock gained 1.62% and Merck rose 1.51% to lead the Dow.
Shares of Disney fell 2.29% in regular trading as it was preparing to report second-quarter earnings that saw the company's revenues grow 23%, while diluted earnings per share fell from 50 cents in the same period last year to 26 cents.
"Our strong results in the second quarter, including fantastic performance at our domestic parks and continued growth of our streaming services -- with 7.9 million Disney+ subscribers added in the quarter and total subscriptions across all our DTC offerings exceeding 205 million -- once again proved that we are in a league of our own," Walt Disney Company CEO Bob Chapek said.
Disney stock rose slightly to start after-hours trading but was down 1.36% an hour after markets closed.