Dow tumbles as oil prices soar to new highs

Traders said a sharp spike in oil prices were the subject to Wall Street's earlier losses.

US stock markets fell heavily in early afternoon trading on Friday after crude oil prices rocketed by almost 10 dollars a barrel to briefly break the 137 dollar barrier for the first time.

The Dow Jones Industrial Average had slumped a hefty 272.76 points (2.16 percent) to 12,331.69 and the tech-dominated Nasdaq composite had dived 46.48 points (1.82 percent) to 2,503.46 at 1736 GMT.

Traders said a sharp spike in oil prices had added to Wall Street's earlier losses. Stocks had been weighed down in earlier trading as a government survey revealed a sharp jump in unemployment.

Wall Street's losses deepened as a key New York oil futures contract rocketed 9.91 dollars to a record 137.70 dollars per barrel before retreating somewhat.