NEW YORK, May 5 (Xinhua) -- Wall Street retreated Monday as Microsoft Corp. withdrew its bid for Yahoo Inc. and oil prices topped 120 U.S. dollars.

    Microsoft withdrew its offer of 43.7 billion dollars to buy Yahoo Inc. Saturday after the Internet provider refused the price.

    The failed deal disappointed Wall Street while Citigroup downgraded Yahoo to sell from buy. Shares of Yahoo tumbled more than 15 percent.

    The soaring oil price also weighed on stocks. Crude oil futures pass 120 U.S. dollars a barrel for the first time on supply concerns, which aroused worries about inflation.

    The Dow Jones industrial average fell 88.66, or 0.68 percent, to 12,969.54. The Standard & Poor's 500 index fell 6.41, or 0.45 percent, to 1,407.49, and the Nasdaq composite index fell 12.87, or 0.52 percent, to 2,464.12.