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Stocks fall sharply on surge in oil, jobs data

Stocks fall sharply on surge in oil, jobs data

Wall Street plunged Friday on two troubling economic developments: oil prices that surged more than $7 a barrel to a fresh record and a jump in unemployment that was much larger than the market anticipated. The Dow Jones industrial average briefly fell more than 300 points.
The decline in stocks also helped drive bond prices sharply higher as investors sought a more secure place for their money.
Crude oil has made an aggressive rebound this week, rising more than $7 a barrel in two days after falling amid a drop in demand for gasoline. The jump continued Friday. Light, sweet crude set a high of $135.49 and recently changed hands up $7.63 at $135.40 a barrel on the New York Mercantile Exchange after reports that a Morgan Stanley shipping analyst predicted oil would surge to $150 a barrel by July 4 and as the dollar declined.
The soaring price of oil has intensified the market's worries that ever-expensive fuel will lead consumers to curtail their spending on non-essentials. And because more than two-thirds of economic activity comes from consumer spending, oil is being seen as a threat to an already sluggish economy.
In early afternoon trading, the Dow fell 287.25, or 2.28 percent, to 12,317.20 after being down as much as 306.71.
Broader stock indicators also declined. The Standard & Poor's 500 index fell 27.04, or 1.93 percent, to 1,377.01, and the Nasdaq composite index fell 49.04, or 1.92 percent, to 2,500.90.


Updated : 2021-05-16 16:31 GMT+08:00