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
Oil prices reached over $120 today.   (AP Photo/David Duprey)
camera-icon View 2 more images

(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.