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Stock prices plummet amid tech selloff, rising interest rates

That's good news for markets: If inflation were to spike, it would push the Federal Reserve to get more aggressive in raising interest rates.

U.S. stocks dropped sharply Wednesday, as a selloff in technology stocks led the major indices to lows not seen since this spring. The Dow Jones industrial average had its second-biggest drop of the year, plunging nearly 500 points, or 1.9 percent, shortly after 2:00 p.m. Eastern time.

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CBS News -
Stock and bond prices drop amid rising interest rates

That's good news for markets: If inflation were to spike, it would push the Federal Reserve to get more aggressive in raising interest rates.

The biggest driver for the market over the last week has been interest rates, which began spurting higher following several encouraging reports on the economy. Higher rates can slow economic growth, erode corporate profits and make investors less willing to pay high prices for stocks.



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