Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

7 of 8
BACKNEXT
June 6 - Oil, unemployment soar
June 6 - Oil, unemployment soar
Dow closed at: 12,209.81
Change in points: -394.64
Percentage change: -3.13%

On what was the year's worst day on Wall Street before the credit crisis hit, market investors sold off as crude oil prices soared.

Oil jumped $10.75 that Friday to $138.54, rising $16 in two sessions. Crude oil prices skyrocketed in response to a Morgan Stanley analyst's note that said oil could hit $150 a barrel by July 4. It nearly did, peaking at $147.27 on July 11.

The spike exacerbated worries about consumer spending, already stretched as gas prices neared a national average of $4 a gallon. As a result, demand for fuel plummeted and oil and gas prices came tumbling down in the late summer.

Stocks also dropped on a Labor Department report that showed that the unemployment rate shot up to 5.5% from 5%. It was the biggest one-month surge in that measure in more than 20 years.

The report suggested to investors that the economy could be in a recession, despite the more than $100 billion in government stimulus checks sent to millions of tax filers throughout the spring.

NEXT: Oct. 13 - Biggest gain ever stops 2,400-point slide
Last updated December 29 2008: 2:39 PM ET
More Galleries
5 great day trips from Sydney Standout escapes just a short journey from Australia's largest city. More
New cameras go weird, wearable - even old school Meet the new crop of digital cameras, an eclectic group each with a very particular set of skills. More
Exploring 10 great cities for business in Asia From Shanghai to Tokyo, Mumbai to Hong Kong, here's how to make the most of the days between the deadlines. More

Special Offer