Newspaper article St Louis Post-Dispatch (MO)

U.S. Stocks Slump as Traders Fear Higher Interest Rates

Newspaper article St Louis Post-Dispatch (MO)

U.S. Stocks Slump as Traders Fear Higher Interest Rates

Article excerpt

NEW YORK * Investor jitters over the possibility the Federal Reserve is ready to raise interest rates this year roiled Wall Street on Friday, handing the stock market its worst day in more than two months.

The Dow Jones industrial average sank nearly 400 points, its worst single-day loss since June. The broad slump wiped out two months of gradual gains, jolting the market out of a mostly flat course over the past several weeks.

Remarks by Fed Bank of Boston President Eric Rosengren, who said a case could be made for the central bank to raise its key interest rate sooner rather than later, unnerved traders who have been expecting the Fed to hold off on a rate hike.

Ultra-low interest rates have been a key driver of an extended stock market rally.

The Fed is scheduled to hold a policy meeting later this month. In recent weeks, few Fed observers have expected the Fed to lift rates this month, speculating that a December hike is more likely. …

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