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. 

Here's where US indexes stood as the market opened at 9:30 a.m. on Wednesday: 

• S&P 500: 3,864.96, down 1.39%

• Dow Jones Industrial Average: 31,664.54, down 1.53% (490.86 points)

• Nasdaq Composite: 11,298.40, down 1.14%

Here's what else is going on: 

• Signature Bank was the target of a US dirty money probe before it was seized.
• Goldman Sachs bought the SVB bonds whose $1.8 billion loss set off the lender's meltdown.
• Carl Icahn warned of further bank troubles and sounded the inflation alarm.
• Elon Musk said there are similarities between the SVB collapse and the 1929 Wall Street crash.
• "Dr. Doom" Nouriel Roubini warned SVB's collapse could spread havoc beyond the US.

In commodities, bonds, and crypto: 

• Oil prices dropped, with West Texas Intermediate down 3.01% to $69.18 a barrel. Brent crude, the international benchmark, fell 2.75% to $75.25 a barrel.
• Gold rose 1.18% to $1,933.00 per ounce.
• The 10-year yield sank 20 basis points to 3.432%.
• Bitcoin rallied 1.98% to $25,210.61.