http://www.reuters.com/article/marketsNews/idUSN0646732720080606

“The U.S. unemployment rate surged to 5.5 percent in May, its highest in more than 3-1/2 years, as the barely growing economy lost jobs for the fifth straight month.”

“The jump in the monthly jobless rate was the biggest in 22 years. Together with a whopping surge in oil prices and a flare-up in Mideast tensions, it renewed fears the U.S. economy was at growing risk of sliding into recession.”

“The Labor Department on Friday said 49,000 jobs were shed by employers last month, on top of 28,000 in April – for a total of 324,000 lost since the beginning of the year. May’s unemployment rate was up from 5 percent in April and was the highest since October 2004.”

“The Dow Jones industrial average .DJI plunged 394.64 points, or 3.13 percent, to close at 12,209.81 while the high tech-laden Nasdaq composite index fell 2.96 percent to end at 2,474.56. Markets were beset by fears that a steady drain in jobs and surging oil prices could signal the country was sliding into 1970s-style stagflation, in which growth slows while prices keep climbing.”

“Oil prices climbed to a record above $139 a barrel and a Morgan Stanley report predicted U.S. crude prices could top $150 by the July 4 national holiday – a development that would hit consumers hard at the gasoline pump.”