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| A trader on the floor of the New York Stock
Exchange reacts to the closing bell in New York June 5, 2006.
(Xinhua/Reuters) | NEW
YORK, June 5 (Xinhua) -- U.S. stocks sank sharply Monday amid concerns over
inflation, as crude oil prices hovered above 72 dollars.
U.S. Federal Reserve (Fed) Chairman Ben Bernanke on
Monday called recent increases in inflation unwelcome and pledged to be vigilant
against the rising inflation.
Analysts said that it is a sign that the U.S. Fed
will continue to increase the short-term interest rate in the policy-making
meeting to be held at the end of this month.
The U.S. Fed has increased short-term interest rates
for 16 times since June 2004 and raised the federal fund rate to 5 percent last
month.
High energy prices aggravated concerns over inflation
as world crude oil prices hovered above 72 dollars Monday. New York's main
contract, light sweet crude for delivery in July, added 27 cents to close at
72.60 dollars a barrel.
At the closing bell, the Dow Jones Industrial Average dropped 199.15, or 1.77 percent, to 11,048.72. The Standard & Poor's 500 index fell 22.93, or 1.78 percent, to 1,265.29. The Nasdaq composite index plunged 49.79, or 2.24 percent, to 2,169.62. Enditem
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