Jabil Circuit's stock experienced a significant pre-market plunge of 5.20% on Wednesday, a sharp reversal from its initial positive reaction to quarterly earnings.

The data center infrastructure company had reported fiscal second-quarter adjusted earnings of $2.69 per share, surpassing the IBES estimate of $2.51. Revenue for the quarter came in at $8.30 billion, also beating the estimated $7.74 billion. Furthermore, the company provided full-year revenue guidance of $34 billion, which exceeded the FactSet consensus estimate of $32.55 billion.

However, the broader market sentiment turned negative pre-market after the release of a hotter-than-expected U.S. Producer Price Index (PPI) report for February. The data sparked concerns about persistent inflation, causing stock futures to fall and bond yields to spike. This macroeconomic headwind appears to have overshadowed Jabil's strong company-specific results, leading to the sharp decline in its share price during the pre-market session.