Stocks drop on China inflation worries

NEW YORK (AP) — Stocks are sliding as investors worry that China might try to slow its surging economy to combat inflation.

Major Chinese indexes have tumbled today amid worries the government might raise interest rates to combat mounting inflation.

Cooling China’s economy could have an impact worldwide because the country’s robust economy has helped offset sluggish growth in places like the U.S. Many companies have credited international sales, particularly in China, as a reason earnings have been strong.

The Dow Jones industrial average is down 60, or 0.5 percent, at 11,225. The S&P 500 is down 6, or 0.5 percent, at 1,208, while the Nasdaq composite is down 14, or 0.6 percent, at 2,541.