NEW YORK, July 14 — Wall Street stocks slumped early today following another gloomy inflation report and disappointing bank results that set a gloomy tone at the start of the second-quarter corporate earnings season.

About 25 minutes into trading, the Dow Jones Industrial Average was down 1.7 per cent at 30,266.17 after earlier tumbling two per cent.

The broad-based S&P 500 fell 1.6 per cent to 3,741.71, while the tech-rich Nasdaq Composite Index shed 1.4 per cent to 11,085.57.

A day after data showing the biggest jump in consumer prices in more than four decades, the Labor Department reported that US wholesale prices rose 1.1 per cent, topping expectations, on a 10 per cent surge in energy prices, more than double the increase in May.

Meanwhile, results from JPMorgan Chase lagged estimates as the banking giant reported a 28 per cent drop in quarterly earnings and set aside additional funds in case of bad loans.

JPMorgan executives stressed that US consumers remained relatively well off if there is a recession, but warned of economic headwinds that "are very likely” to dent growth.

Shares of JPMorgan fell 4.4 per cent. Morgan Stanley, which also missed estimates, dropped 2.6 per cent.

The weak bank results underscore "that now we’re entering the process of the very real possibility of an earnings recession,” said Adam Sarhan of 50 Park Investments, referring to the possibility of two consecutive quarters of lower profits compared to the year-ago period.

"That could lead to lower (stock) prices,” Sarhan said. "Because first thing slowed down on Main Street, and then you see earnings slow down on Wall Street.” — AFP