Dow Jones plunges 400

NEW YORK (AP) ‘ Wall Street plunged Friday, taking the Dow Jones industrials down nearly 400 points as oil prices shot up more than $11 and neared $140 a barrel ‘ and wiped out investors’ recent optimism about the economy in the process.
The prospect of higher energy prices that could hobble consumers and worsen a slowing economy had investors frenetically pulling money out of stocks.
Crude oil has seen a huge rebound this week after falling amid a drop in demand for gasoline. The jump continued Friday; light, sweet crude set a high of $139.12 in after-hours trading on the New York Mercantile Exchange after settling at $138.54, a gain of $10.75 in the regular session.
The soaring price of oil has intensified the market’s worries that ever-expensive fuel will lead consumers to curtail their spending. With gasoline at the threshold of a national average of $4 a gallon, crude’s surge higher is expected to propelling gas higher, and make Americans more reluctant to spend.
‘I think the biggest concern right now is oil and its potential for a stagflationary environment,’ said Bill Knapp, investment strategist for MainStay Investments.