The S&P 500 and Nasdaq decline on Thursday, marking weekly losses as investors evaluate earnings and inflation.

On Thursday, the S&P 500 and Nasdaq Composite both declined, ending a week of losses as investors grappled with conflicting earnings reports from major banks and increasing inflation.

The broad-market index, Nasdaq Composite, and Dow Jones Industrial Average all experienced losses, with the broad-market index falling 1.21%, the Nasdaq Composite losing 2.14%, and the Dow Jones Industrial Average dropping 113.36 points or 0.33%.

The S&P 500, Nasdaq Composite, and Dow have all experienced a decline in value during the four-day holiday week. Specifically, the S&P 500 is down 2.13%, the Nasdaq Composite is off 2.63%, and the Dow is down 0.78%. Trading is closed at the NYSE on Friday.

This week, investors' focus shifted to inflation as the market made significant moves. The treasury yields increased, and two consecutive U.S. inflation reports indicated a sharp rise in prices. On Thursday, the 10-year U.S. Treasury yield reached multiyear highs, rising 13 basis points to 2.8%.

According to Adam Sarhan, founder and CEO of 50 Park Investments, the current state of yields has a direct impact on stocks because it is just one more negative data point among many that investors must confront.

The consumer price index reading for March showed an 8.5% increase from the previous year, which is the fastest annual gain since December 1981 and higher than the Dow Jones estimate of 8.4%.

The supplier prices for March were unexpectedly higher, increasing by 11.2% from the previous year and setting a new record for the largest gain since 2010.

On Thursday, tech shares plummeted due to inflation fears and higher bond yields, as investors shifted their focus from growth stocks to more stable assets. Microsoft, Apple, and Google all experienced significant declines, with Microsoft dropping 2.7%, Apple tumbling 3%, and Google slipping 2.4%. Additionally, chip stocks suffered, with Nvidia sliding about 4.3% and Advanced Micro Devices falling about 4.8%.

Elon Musk made a final offer of $54.20 per share to buy Twitter, but the social media company's shares fell by 1.7%. Meanwhile, Tesla shares dropped by 3.6%.

Speculation on the central bank's response to rising prices was further fueled by this week's reports.

According to Federal Reserve board member Christopher Waller, the data supports taking a step of policy action if the committee decides to do so, and provides the basis for doing it. Waller prefers a front-loading approach, which would involve a 50-basis-point hike in May, possibly followed by more in June and July.

As they determine their course of action, investors are considering the impact of inflation data, the Fed's future moves, and first-quarter earnings.

The U.S. Census Bureau reported that retail sales for March experienced a 0.5% increase, which was slightly below the 0.6% consensus estimate from Dow Jones, with gas station sales being the main driver of this growth.

The number of jobless claims increased by 185,000 during the week ending April 9, as per data from the Labor Department.

Major banks post mixed results

Major banks such as Goldman Sachs, Morgan Stanley, and Wells Fargo released their first-quarter earnings reports, which were examined by investors to assess how the banks managed the impact of inflation.

The bank's stock price rose 0.1% after reporting a first-quarter earnings beat. The bank reported per-share earnings of $10.76 on $12.93 billion in revenue. Analysts polled by Refinitiv expected per-share earnings of $8.89 on revenue of $11.83 billion.

The bank's earnings exceeded analysts' expectations, causing its stock price to rise by 0.7%. The firm reported earnings of $2.02 per share on revenue of $14.8 billion, while analysts had predicted $1.68 in per-share earnings and $14.2 billion in revenue. The bank's revenues from equity and fixed-income trading were stronger than expected.

Despite posting first-quarter revenue that was lower than anticipated, Wells Fargo's shares dropped 4.5% on Thursday. Additionally, the bank warned that credit losses may rise.

According to Sarhan of 50 Park Investments, although we are early in earnings season, we have yet to process all the numbers. However, the market is currently attempting to stabilize after a significant sell-off.

, and also reported earnings Thursday.

Notable companies issuing earnings next week

Seven Dow blue-chip companies will report their earnings next week, with reporting on Tuesday and reporting on Wednesday, both after the market closes.

Both banks and transportation companies, including trucking firms, will release their earnings reports on Monday.

, and are also on the calendar as are railroads and .

— CNBC’s Patti Domm and Hugh Son contributed reporting.

Wells Fargo increased its allowance for credit losses by $1.1 billion.