Go Finance Reporting in NEW YORK - The stock market weakened as oil prices shot up again. This makes market participants estimate the expenditure for fuel will increase and will further disrupt the economy.
Oil prices rose $ 2, 66 and was at USD99, 63 per barrel amid unrest in Iran and Libya. Iran "pinch" anti-government protesters and troops loyal to the Libyan leader Moammar Kadhafi-attacks launched against the rebels to press its control over the country.
Oil prices jumped 13 percent last week because of turmoil in North Africa and the Middle East. Due to rising oil and gas prices, America is now paying approximately USD75 million more per day to fill their gas tank since a week ago.
Federal Reserve Governor Ben Bernanke told the Senate Banking Committee that the increase in crude oil prices could pose a risk to economic recovery.
But he estimates that inflation will only be affected only temporary. Bernake also said he expects economic growth this year, though not enough to lower the unemployment rate of nine percent.
As quoted from the Associated Press (AP), U.S. stock index at the close of trading Tuesday (03/01/2011) closed lower. Dow Jones lost 168.32 points, or 1.4 percent, to 12058.02.
While the broader Standard & Poor's 500 fell 20.89, or 1.6 percent, to 1306.33. And the Nasdaq composite index fell 44.86 points, or 1.6 percent, to 2737.41. While trading volume appears under control with only recorded 4.8 billion shares. (GoFinance)
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