BLUE Chip stocks fell yesterday following a jump in crude oil prices which sparked off inflation fears in the bond market.
The Dow Jones industrial average dropped 68.08 points to 7,689.98, reducing Tuesday's 153 point gain.
In the broader market, declining issues led advances 1,558 to 1,254 on heavy volume of 603 million shares on the New York Stock Exchange.
Stocks spent the day swinging sharply but the market took a sharp downturn following news that OPEC reached an agreement to limit overproduction, which is meant to boost oil prices and could feed inflation.
Wall Street's concern about the impact of higher oil prices was reflected in the inflation sensitive bond market, where the 30 year Treasury fell 19/32, or $5.94 on a $1,000 bond, raising its yield to 6.74 per cent from 6.69 per cent Tuesday. The price and yield move in opposite directions.
Meanwhile, crude oil for August delivery rose 49 cents to $19.52 a barrel.
OPEC, which met in Vienna, said the 11 member oil cartel had agreed to retain its 25.03 million barrels per day ceiling until the end of the year.
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