NEW YORK -- Wall Street plunged Wednesday with the Dow Jones average dropping more than 200 points as crude oil prices rocketed above 133 U.S. dollars stirring investors' concerns on inflation and economic outlook.
Oil prices surged more than 4 dollars to a record near 133.82 dollars a barrel on Wednesday after a U.S. government report showed a surprise drop in crude stockpiles, reinvigorating fears of a worsening supply crunch.
In an economic update accompanying the minutes from its April 29-30 policy meeting, which released Wednesday, the U.S. Federal Reserve cut its projection for the nation's economic growth this year.
The central bank forecasts that the economy will grow at a pace between just 0.3 percent to 1.2 percent in 2008, lower than its prior estimate of 1.3 percent to 2.1 percent growth for the year.
The Fed said that real incomes were being held down by higher oil prices, falling house prices had reduced household wealth, and households and businesses were facing tighter credit conditions.
In corporate news, Time Warner rose moderately as it's going to get a dividend of 9.25 billion dollars as it separates from Time Warner Cable.
The Dow Jones industrial average was down 226.43 points, or 1.77 percent, at 12,602.25. The Standard & Poor's 500 Index fell 22.64 points, or 1.60 percent, at 1,390.76. The Nasdaq Composite Index declined 43.99 points, or 1.77 percent, at 2,448.27.
Oil prices surged more than 4 dollars to a record near 133.82 dollars a barrel on Wednesday after a U.S. government report showed a surprise drop in crude stockpiles, reinvigorating fears of a worsening supply crunch.
In an economic update accompanying the minutes from its April 29-30 policy meeting, which released Wednesday, the U.S. Federal Reserve cut its projection for the nation's economic growth this year.
The central bank forecasts that the economy will grow at a pace between just 0.3 percent to 1.2 percent in 2008, lower than its prior estimate of 1.3 percent to 2.1 percent growth for the year.
The Fed said that real incomes were being held down by higher oil prices, falling house prices had reduced household wealth, and households and businesses were facing tighter credit conditions.
In corporate news, Time Warner rose moderately as it's going to get a dividend of 9.25 billion dollars as it separates from Time Warner Cable.
The Dow Jones industrial average was down 226.43 points, or 1.77 percent, at 12,602.25. The Standard & Poor's 500 Index fell 22.64 points, or 1.60 percent, at 1,390.76. The Nasdaq Composite Index declined 43.99 points, or 1.77 percent, at 2,448.27.
