US share markets reacted negatively to yet another new oil price record, with the Dow Jones falling nearly one percent on Friday.

The Dow Jones industrial average lost 120.90 points, or 0.94 percent, to close at 12,745.88, while the broader Standard & Poor's 500 index lost 9.40 points, or 0.67 percent, to close at 1,388.28.

The Nasdaq composite dropped by 5.72 points, or 0.23 percent, to close at 2,445.52.

Commodity prices surged on Friday, with the price of US light crude oil for June delivery finishing the day at a record high of US$125.96 per barrel on the New York Mercantile Exchange, after earlier peaking at a trading record of US$126.20. The price of gold on the COMEX index shot up by US$3.70 to US$885.80 an ounce.

Shares in AIG dipped by 8.8 percent after the insurer reported a steeper-than-expected quarterly loss, while Citigroup's shares dipped by 2.2 percent after revealing its plans to sell off around US$400 billion in assets, or 20 percent of its total, over the next two to three years to become more "fit" and profitable.

Market breadth was negative and volume was moderate. On the New York Stock Exchange, losers beat winners by eight to seven,. while decliners topped advancers by five four on the Nasdaq.

© NewsRoom 2008