Surge in joblessness, oil near $140 fuel recession fears
"The U.S. jobs report had recessionary paw prints all over it," said Sherry Cooper, chief economist at BMO Capital Markets. .
The stock market tanked on the news, only to see losses accelerate as oil continued to surge, fueling fears people paying more at the pump will cut back on consumer spending.
"In past times usually when our economy went down, oil prices would go down," said Owen Fitzpatrick, chief U.S. equities strategist at Deutsche Bank. "But we're not in the driver's seat anymore. Supply is coming from Saudi Arabia, and it's China on the demand side.
"This time, it's not a sign of our economy overheating," he added.
Crude finished the session on a gain of nearly $11 at $138.54 a barrel, after earlier reaching a record high above $139.
At the end of Friday, the Dow Jones Industrial Average
12,209.81, -394.64, -3.1%) plunged 394.64 points, or 3.1%, to end 12,209.81, giving it a weekly loss of 3.5%.
"Some people are throwing their hands up in the air with exasperation, and have thrown the towel for the week," said Sam Stovall, senior investment strategist at Standard & Poor's.
1,360.68, -43.37, -3.1%) fell 43.36 points, or 3.1%, to 1,360.69, leaving it down 2.9% for the week. The technology-heavy Nasdaq Composite Index :
Nasdaq Composite Index
The stock market tanked on the news, only to see losses accelerate as oil continued to surge, fueling fears people paying more at the pump will cut back on consumer spending.
"In past times usually when our economy went down, oil prices would go down," said Owen Fitzpatrick, chief U.S. equities strategist at Deutsche Bank. "But we're not in the driver's seat anymore. Supply is coming from Saudi Arabia, and it's China on the demand side.
"This time, it's not a sign of our economy overheating," he added.
Crude finished the session on a gain of nearly $11 at $138.54 a barrel, after earlier reaching a record high above $139.
At the end of Friday, the Dow Jones Industrial Average
12,209.81, -394.64, -3.1%) plunged 394.64 points, or 3.1%, to end 12,209.81, giving it a weekly loss of 3.5%.
"Some people are throwing their hands up in the air with exasperation, and have thrown the towel for the week," said Sam Stovall, senior investment strategist at Standard & Poor's.
1,360.68, -43.37, -3.1%) fell 43.36 points, or 3.1%, to 1,360.69, leaving it down 2.9% for the week. The technology-heavy Nasdaq Composite Index :
Nasdaq Composite Index
