Wall Street Drops on Oil, Economy; Dow off 2 Percent

NEW YORK—U.S. stocks extended losses Friday as surging oil prices fueled inflation fears, adding to concerns sparked by a government report that showed the unemployment rate had its sharpest rise in 22 years in May.

The Dow Jones industrial average slid 280.17 points, or 2.22 percent, to 12,324.28. The Standard & Poor's 500 Index tumbled 25.74 points, or 1.83 percent, to 1,378.31. The Nasdaq Composite Index dropped 43.50 points, or 1.71 percent, to 2,506.44.