Oil, Bonds Rally, Stocks Plunge as Mideast Unrest Intensifies
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Oil surged to a two-year high, while the Standard & Poor’s 500 Index sank the most since August, as escalating violence in Libya spurred concern that Middle East instability will hurt the world economy. Treasuries and the Swiss franc rose. New Zealand’s dollar slid after an earthquake.
Oil for March delivery jumped 8.6 percent from the Feb. 18 settlement to $93.57 a barrel. The S&P 500 Index lost 2.1 percent to 1,315.44, its biggest drop in six months, as Wal-Mart Stores Inc. tumbled after sales trailed its own forecast. The Chicago Board Options Exchange Volatility Index climbed 27 percent, the most since May. Ten-year Treasury yields slid 13 basis points and the franc gained 0.9 percent versus the dollar.