Jun 27

Dow Jones Slips Down to Lowest Level in 2 Years

The Dow Jones industrials slipped nearly 360 points to its lowest level in 2 years as price of oil drove stocks lower Thursday.  Oil futures went past the $140 after the OPEC predicted that a barrel of crude oil could go as high as $150 this year.  Libya likewise announced that it may cut oil production.

This would eventually translate to higher gasoline prices which will consequently increase  prices of goods and services across the world economy.  With the current prospect of gas prices, the hardest hit is the automotive industry where shares of General Motors Corp. went to their lowest point in more than three decades.

The Dow dropped 358.41 points, more than 3 percent, to close at 11,453.42 — its lowest finish since Sept. 11, 2006. Investors rushed for the safety of Treasury bonds, regarded as a haven when the stock market is in turmoil.

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