Wall Street is grappling with losses related to earnings

U.S. stocks dropped Thursday after disappointing earnings of Disney as well as a plunge in shares of regional banks and the threat of a U.S. debt default.

Concerns of bank failure popped up again partially because of debt ceiling potential risk as well as liquidity issues regional banks recently show.

Disney shares were down more than 9% in Thursday session – which makes the entertainment giant the worst-performing stock on the Dow – after The company announced 4 m subscribers loss in the first quarter. The decline is probably due to hiking prices for its streaming service, Disney+.

Risk aversion also played an important role in deepening the losses in Wall Street after PacWest Bancorp plunged 20% after it reported a drop in deposits last week and pledged an additional $5.1 billion of its loans to the central bank.

US major indexes plunged, with only Nasdaq on its track to weekly gains. Dow lost 230 points with 0.2% losses for S&P500.

Investors received an update on wholesale prices in the form of the producer prices index after one day of Wednesday’s report on U.S. consumer-prices reading. The index’s headline number showed wholesale prices grew by just 0.2% last month, lower than the 0.3% increase economists polled by The Wall Street Journal had expected.