Mortgage Worries Stalk Stocks

Anxiety over Freddie, Fannie, plus higher crude, gives markets a bad day
By Nick McMaster,  Newser Staff
Posted Jul 11, 2008 3:49 PM CDT
In this July 10, 2008 file photo, Treasury Secretary Henry Paulson testifies on Capitol Hill in Washington, before the House Financial Services Committee hearing on systemic risk and the financial markets.   (AP Photo/Manuel Balce Ceneta, File)
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(Newser) – The markets saw losses today, battered by continued worries over the solvency of mortgage guarantors Fannie Mae and Freddie Mac and a fresh spike in crude prices, MarketWatch reports. The Dow fell 128.48, to 11,100.54. The Nasdaq shed 18.77, closing at 2,239.08, while the S&P 500 lost 13.90 to close at 1,239.49.

Global supply concerns drove oil to an intraday record of $147 a barrel, although it closed at $145. "Here we go again," one analyst told the Wall Street Journal. "Just when the bears gather enough courage to peek out from underneath their rock, the bulls squash them like a bug, again."

  • For the week, the Dow lost 1.6%, the Nasdaq shed 0.3%, and the S&P 500 fell 1.8%.