Dow sinks by 500 points at low Wednesday as inflation-fear fueled slump deepens

A slide in U.S. stock indexes accelertaed Wednesday midday, after a reading on inflation for the year to April climbed 4.2%, marking the highest rate in about 13 years, reigniting fears that the Federal Reserve may need to dial back its easy money policies earlier than expected. The Dow Jones Industrial Average was trading 487 points, or 1.4%, lower at 33,783, trying to defend its 50-day moving average at 33,328. The S&P 500 index was trading 1.8% lower at 4,079, while the Nasdaq Composite Index was off 2.5% to around 13,056.