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Wall Street ends week with decline

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NEW YORK (AP) ‘ 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.

Insurer American International Group Inc. helped send the Dow Jones industrial average down about 120 points after posting a wider-than-expected first-quarter loss that rekindled anxiety about the strained state of the global financial system.

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. For the week, oil jumped nearly $10.

‘I think what we’re seeing so far is a reaction principally to the AIG news,’ said Phil Orlando, chief equity market strategist at Federated Investors.

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