Dow tumbles nearly 500 points as Credit Suisse stokes fears of bank failure contagion

  • The Dow sank nearly 500 points Wednesday as concerns in the financial sector continued to swirl.

* Shares of Credit Suisse tumbled more than 20%, stoking bank failure contagion fears.

* A gauge of wholesale inflation for February unexpectedly dropped.

US stocks tumbled Wednesday, as the banking sector saw renewed turmoil — but this time focused on Europe. US-listed shares of Credit Suisse plunged more than 20%, as Saudi backers ruled out further investment in the embattled lender.

Since regulators shut down Silicon Valley Bank on Friday, investors have been concerned about another 2008-style financial crisis. On Tuesday, Moody’s cut its outlook for the entire US banking system. Meanwhile, the Labor Department reported wholesale prices posted a monthly decline of 0.1% in February, versus expectations for a 0.3% increase.