Stocks Tumble on Inflation Worries

The Dow had its biggest drop in three years, while the Nasdaq erased its 2006 gains. Says one pro: "The market is grasping for leadership"

Wednesday brought fresh misery to the stock market's not-so-merry month of May as major indexes finished broadly lower on heavy trading volume. Investors headed for the exits after a surprisingly firm inflation report which fanned fears of higher interest rates. The data overshadowed strong quarterly results from technology bellwether Hewlett-Packard (HPQ), says Standard & Poor's Equity Research.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.