What Happened?

A number of stocks fell in the afternoon session after hotter-than-expected inflation data and rising concerns over credit risk rattled investors. 

January's Producer Price Index (PPI), a measure of wholesale inflation, rose 0.5% against expectations of 0.3%, with the core component jumping 0.8%. This report fuels the narrative of "sticky inflation," suggesting the Federal Reserve may have limited room to cut interest rates. Compounding these worries are growing anxieties in the credit markets. According to a Bank of America strategist, problem loans are an increasing concern that could pressure lenders. Investors are reassessing credit risk, particularly in private-credit and leveraged-loan markets, weighing on the valuations of banks sensitive to the economic cycle.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Regional Banks company Atlantic Union Bankshares (NYSE: AUB) fell 7%. Is now the time to buy Atlantic Union Bankshares? Access our full analysis report here, it’s free.
• Regional Banks company East West Bank (NASDAQ: EWBC) fell 6.6%. Is now the time to buy East West Bank? Access our full analysis report here, it’s free.
• Regional Banks company Coastal Financial (NASDAQ: CCB) fell 6.7%. Is now the time to buy Coastal Financial? Access our full analysis report here, it’s free.
• Regional Banks company Wintrust Financial (NASDAQ: WTFC) fell 6.6%. Is now the time to buy Wintrust Financial? Access our full analysis report here, it’s free.
• Regional Banks company United Community Banks (NYSE: UCB) fell 6.6%. Is now the time to buy United Community Banks? Access our full analysis report here, it’s free.

Zooming In On Atlantic Union Bankshares (AUB)

Atlantic Union Bankshares’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 4 months ago when the stock dropped 6% on the news that disclosures from two lenders raised concerns about deteriorating loan quality across the industry. 

The drop was triggered by specific incidents that have spooked investors. Zions Bancorp announced a $50 million charge-off—a debt the bank doesn't expect to collect—on a single loan. Separately, Western Alliance Bancorp revealed it was dealing with a borrower who had failed to provide proper collateral. These events are compounding existing anxieties about the regional banking sector, which is already under pressure from elevated interest rates and declining commercial real estate values. The news heightened investor concerns that more cracks could appear in borrowers' creditworthiness, potentially leading to increased loan losses and reduced profitability for other banks in the sector.

Atlantic Union Bankshares is up 5.2% since the beginning of the year, but at $37.38 per share, it is still trading 10.5% below its 52-week high of $41.78 from February 2026. Investors who bought $1,000 worth of Atlantic Union Bankshares’s shares 5 years ago would now be looking at an investment worth $988.21.

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