THE Dow Jones industrial average tumbled nearly 150 points yesterday as new inflation signals sent US stocks plunging back into the doldrums that have erased all of 1997's gains. On Wall Street, the Dow lost 148.36 points to close at 6,391.69, pushing the stock market's best known barometer below 6,400 for the first time - since the start of the year.

The Dow, which just a month ago was sporting a gain of nearly 10 per cent on the year, is now down almost 1 per cent in 1997. It was the Dow's third drop of more than 140 points in 11 sessions.

Broad market measures also posted stiff losses after the bond market slid, boosting interest rate to a nine month high, following this morning's reports on whole sale prices and retail sales.