Stocks Sink as Crude Soars

Investors worry about impact on consumers
By Sam Gale Rosen,  Newser Staff
Posted May 7, 2008 3:44 PM CDT
Traders at the New York Mercantile Exchange deal in crude oil options on Wednesday, May 7, 2008.   (AP Photo)
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(Newser) – Stocks zoomed downward today as oil topped $123 a barrel, hastening a sell-off by anxious investors. "You can still get a lot of nervousness when they see these daily moves in crude, along with follow-through in the stock market," an analyst tells the Wall Street Journal. The Dow ended down 206.48 to 12,814.35, the Nasdaq 44.82 to 2,438.49, and the S&P 25.69 to 1,392.57.

Oil prices are currently about twice what they were last year at this time. Financials fell fast, led by American International and American Express. One positive hiccup in the downward data was a jump by Disney stock, the Journal notes. Meanwhile, policy-makers are also becoming increasingly worried about the possibility of inflation.