June 08, 2008	Sunday	Jamadi-us-Sani 03, 1429

NEW YORK, June 7: Wall Street went into a dizzying decline on Friday as a record surge in crude oil prices combined with a sharp jump in US unemployment sent traders scurrying for cover.

The Dow Jones Industrial Average plummeted 394.64 points (3.13 per cent) to end at 12,209.81 as all 30 blue-chip shares lost ground.

The tech-dominated Nasdaq composite sank 75.38 points (2.96 percent) to 2,474.56 and the Standard & Poor’s 500 broad-market index slid 43.37 points (3.09 percent) to 1,360.68.

The skyrocketing price of oil and a surge in the May unemployment rate dealt the market a one-two punch, said Al Goldman at Wachovia Securities.

Wall Street traders were stunned by the biggest-ever one-day rise in crude oil futures, adding to worries about a weak economy.

New York’s main oil futures contract, light sweet crude for July delivery, leapt $10.75 a barrel to close at a record $138.54 as fears of a new Middle East conflict were fanned by comments from a top Israeli official about Iran.

Also hitting sentiment was a weak report on the labour market, seen as one of the best indicators of economic momentum.

The jobless rate jumped half a point to 5.5 percent as 49,000 jobs were lost.—AFP