Newspaper article THE JOURNAL RECORD

Stocks Fall on Higher Oil Prices, Interest Rates

Newspaper article THE JOURNAL RECORD

Stocks Fall on Higher Oil Prices, Interest Rates

Article excerpt

NEW YORK (AP) - Wall Street's four-day reprieve from worries about the economy and the Persian Gulf ended Thursday as stock prices fell sharply in response to higher oil prices and rising interest rates.

The Dow Jones industrial average fell 39.11 to 2,593.32 after gaining 149.01 points over the previous four sessions.

The average had been down between 20 and 25 points for much of the day, but computer program trading in the last half-hour steepened the market's losses. The blue chip indicator was down nearly 54 points before regaining some ground.

Declining issues outnumbered gainers by a margin of more than 2 to 1 in nationwide trading of New York Stock Exchange-listed stocks, with 482 up, 998 down and 501 unchanged.

Volume on the floor of the Big Board came to 120.89 million shares, down from 127.65 million in the previous session.

Nationwide, consolidated volume in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 144.97 million shares.

The rising price of oil and a surge in market interest rates rekindled fears that the economy will slip into a recession.

The near-term price of light, sweet crude rose 85 cents to $26.77 a barrel on the New York Mercantile Exchange, while in the credit markets, the yield on the Treasury's bellwether 30-year bond climbed to 8.98 percent by late afternoon from late Wednesday's 8.92 percent.

The Bank of Japan's decision to raise its discount rate to 6 percent from 5.25 percent underscored some concerns about the Federal Reserve's willingness to lower interest rates in this country.

There also were signs that consumers are becoming more pessimistic about the economy. That prompted concerns in the market that consumers might curtail their spending, making an economic downturn self-fulfilling. …

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