Wall Street ended the week with a big decline as investors grappled with two of the biggest threats to the economy: fallout from turmoil...
NEW YORK — Wall Street ended the week with a big decline as investors grappled with two of the biggest threats to the economy: fallout from turmoil in the credit market and surging energy prices. All three major indexes suffered losses for the week.
On Friday the Dow fell 120.90 points to 12,745.88.
The Nasdaq was down 5.72 points to 2,445.52. The Standard and Poor’s 500 index slid 9.40 points to 1,388.28.
For the week, the Dow fell 2.39 percent, the S&P 500 declined 1.81 percent and the Nasdaq lost 1.27 percent.
Most Read Business Stories
Microsoft, one of the 30 Dow stocks, gained 12 cents to end the day at $29.39. Boeing, another Dow stock, slipped 70 cents to end at $84.06.
AIG reported it lost $7.81 billion — its second straight quarterly loss — and revealed plans to raise $12.5 billion in the coming months. The world’s largest insurer, like many of its peers in the financial-services sector, has seen its investments in the credit markets plunge in value.
Meanwhile, rising crude-oil prices remained a source of worry for investors, as they had much of the week and in recent months.
Oil futures rose above $126 a barrel for the first time, further stoking Wall Street’s concerns about inflation that could curtail consumer spending. Light, sweet crude rose as high as $126.20 on the New York Mercantile Exchange before settling at a record $125.96. For the week, oil jumped nearly $10.
Phil Orlando, chief equity market strategist at Federated Investors said investors retreated primarily because of the AIG news.
“That news came as something of a surprise to some and a wake-up call to most that the financial-service companies are not yet out of the woods.”
Investors’ caution Friday precedes what will likely be a busy week of economic news now that the flow of quarterly earnings reports is beginning to ebb.
“Next week I think will be a fairly important economic week,” Orlando said.