Stocks Fall as Gasoline Demand Jumps, Bernanke Comments on Economy
Wall Street turned lower Wednesday as investors worried that a sharp jump in oil prices could be another sign that consumers are under stress in an economy that is showing signs of a recession. The major indicators, which spent most of the session in a tight trading range, tumbled after oil prices shot higher in response to the Energy Department's report of an unexpected jump in gasoline demand.</br></br>The Dow Jones industrial average fell 48.53, or 0.38 percent, to 12,605.83 after changing direction several times. Broader market indicators also fell. The Standard & Poor's 500-stock index fell 2.65, or 0.19 percent, to 1367.53, while the Nasdaq composite index fell 1.35, or 0.06 percent, to 2361.40.</br></br>The credit crisis and weak economy have sent stocks tumbling in the past six months. But the market had shown some renewed confidence that the worst of the credit problems might be behind Wall Street; that upbeat sentiment sent stocks up nearly 400 points on Tuesday, the first day of the second quarter.</br></br>Some of the pullback late Wednesday also was pinned on profit-taking after that big advance. Also Wednesday, Fed Chairman Ben S. Bernanke said he expected the economy to contract in the first half of the year -- a trend that would mean the United States is in a recession.</br></br>Treasury bonds moved slightly lower as investors weighed Bernanke's testimony before Congress; fixed-income investors were focused on hints from Bernanke that the central bank might be less aggressive about lowering interest rates. The 10-year Treasury note's yield, which moves opposite its price, rose to 3.6 percent.