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Stocks Fall on Yahoo Plunge, Oil Spike

Investors cautious on new developments

By Sam Gale Rosen,  Newser Staff

Posted May 5, 2008 3:32 PM CDT

(Newser) – Stocks fell today as Yahoo shares plummeted 16% and crude prices jumped past $120 a barrel. "People have gotten in, but they don't want to be in a big way," a investment officer told the Wall Street Journal. The Dow fell 88.66 at 12,969.54, the Nasdaq 12.87 to 2,464.12, and the S&P 500 6.41 at 1,407.49.

Yahoo took a beating after climbing more than 50% in the wake of the Microsoft's bid, and crude prices spiked on fresh evidence of tension in several major oil-producing countries. All this is leading investors to be extra cautious. "We'll see further conservatism on the part of buyers in the acquisition market,'' a portfolio manager told Bloomberg.

Oil prices reached over $120 today.
Oil prices reached over $120 today.   (AP Photo/David Duprey)
Markets were bearish today, much like this bear.
Markets were bearish today, much like this bear.   (AP Photo/Christina Bush, File)
Today's market losses were not as adorable as polar bear cub Wilbaer, swimming in the outdoor enclosure at the zoo of Stuttgart.
Today's market losses were not as adorable as polar bear cub "Wilbaer," swimming in the outdoor enclosure at the zoo of Stuttgart.   (AP Photo/Daniel Maurer)
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