Stocks and bonds slid yesterday after record oil prices and surprisingly strong gains in jobs and wages unnerved investors, who feared that...
NEW YORK — Stocks and bonds slid yesterday after record oil prices and surprisingly strong gains in jobs and wages unnerved investors, who feared that a more robust labor market and higher wages could spark inflation and lead to more interest-rate increases. The major indexes closed down for the week.
The Dow Jones industrial average fell 52.07 to 10,558.03, compounding an 87-point drop the previous session.
Microsoft, one of the 30 Dow stocks, advanced 44 cents yesterday to close at $27.76 a share, ending up a healthy 8.4 percent for the week. Boeing, also a Dow stock, slipped 8 cents yesterday to $66.19, up 0.3 percent for the week.
Broader stock indicators also closed lower. The Standard & Poor’s 500 index dropped 9.44 to 1,226.42, and the Nasdaq composite index fell 13.41 to 2,177.91.
The three main indexes ended the week lower for the first time in five weeks. The Dow edged 0.8 percent lower, the S&P drooped 0.6 percent and the Nasdaq dropped 0.3 percent.
Wall Street extended its losses from Thursday after the Labor Department said workers’ average hourly earnings rose to $16.13 in July, the largest increase for the year.
The financial markets got no help from the price of oil, which climbed on fears the U.S. gasoline supply wouldn’t meet the summer’s demand. A barrel of light crude settled at a record $62.31, up 93 cents, on the New York Mercantile Exchange.
Bond prices sank. The yield on the 10-year Treasury note rose to 4.39 percent, its highest level since April, from a yield of 4.31 percent late Thursday.
“A nagging concern would be if bond yield continue to go higher,” said Steven Goldman, chief market strategist for Weeden & Co. in Greenwich, Conn., since rich bond yields make stocks less attractive. “Assuming that does not occur, I think stocks can find support in the next week or two and start to stabilize.”