Oil Spike, Jobs Report Pound Market


TIM PARADIS,
Associated Press
June 6, 2998

NEW YORK – Stocks plunged Friday, sending the Dow Jones industrials down nearly 400 points, after oil prices shot up nearly $11 a barrel and neared $140 a barrel – and wiped out investors’ recent optimism about the economy in the process.

The prospect of higher energy prices that could hobble consumers and worsen a slowing economy had investors frenetically pulling money out of stocks. The bad news about rising energy prices compounded investors’ anxiety over a worrisome reading on unemployment, which for May showed its biggest monthly rise since 1986.

The decline in stocks also helped drive bond prices sharply higher as investors sought a more secure place for their money.

Crude oil has seen a huge rebound this week after falling amid a drop in demand for gasoline. The jump continued Friday; light, sweet crude set a high of $139.12 in after-hours trading on the New York Mercantile Exchange after settling at $138.54, a gain of $10.75 in the regular session. The surge followed a Morgan Stanley analyst’s prediction that crude would reach $150 a barrel by July 4; a decline in the dollar and fresh tensions in the Middle East added to crude’s advance.

Read article

WATCH ALEX JONES’ ENDGAME ONLINE NOW in its entirety. View more High quality trailers at www.endgamethemovie.com

Infowars.com Videos:


Comments are closed.