Dow falls more than 500 points on inflation fears and as JPMorgan warns of risks to the economy

• US stocks sank on Thursday as investors come to grips with June's CPI reading and bank earnings roll in.
• JPMorgan and Morgan Stanley both reported earnings that fell short of estimates.

The Dow Jones Industrial Average fell over 500 points on Thursday as investors digest the first wave of big bank earnings and grapple with June's stubbornly high Consumer Price Index reading released on Wednesday.

JPMorgan and Morgan Stanley both reported earnings Thursday morning. Morgan Stanley reported revenue of $13.13 billion compared to estimates of $13.48 billion. JPMorgan also missed estimates, reporting $31.63 billion versus estimates of $31.97 billion.

Moreover, JPMorgan CEO Jamie Dimon had a word of caution as the economy enters a particularly precarious stage in the last half of this year.

"The U.S. economy continues to grow and both the job market and consumer spending, and their ability to spend, remain healthy," he said. "But geopolitical tension, high inflation, waning consumer confidence, the uncertainty about how high rates have to go and the never-before-seen quantitative tightening and their effects on global liquidity, combined with the war in Ukraine and its harmful effect on global energy and food prices are very likely to have negative consequences on the global economy sometime down the road."

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Thursday:

• S&P 500: 3,734.69, down 1.76%

• Dow Jones Industrial Average: 30,213.50, down 1.82% (559.29 points)

• Nasdaq Composite: 11,061.72, down 1.65%

Consumer inflation in June clocked in at 9.1%, surpassing estimates of 8.9%. The reading rattled US stocks yesterday and set off a series of dire warnings of what the Federal Reserve is going to have to do to tame prices.

Top economist Mohamed El-Erian warned on Thursday that the Fed could be forced to raise interest rates by 100 basis points at this month's meeting to confront the reality of inflation.

Jeremy Siegel, meanwhile, was optimistic that inflation had hit its peak. The Wharton professor also said though that the Fed would keep hiking rates.

In crypto, Celsius filed for bankruptcy. The trouble crypto lender was among a number of firms to halt customer withdrawals amid a brutal bear market for digital assets. A state regulator in Vermont on Wednesday warned the company is "deeply insolvent."

Oil price were down. WTI fell 3.25% to $93 per barrel. Brent, oil's international benchmark, was down about 3% to $95.61 a barrel.

Gold prices were down by nearly 2%, trading at $1,702.70 per ounce. The 10-year Treasury yield climbed 9.6 basis points to 3.00%.

Bitcoin trade higher by about 3.6%, at $19,730.