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Wall Street’s interest rate ghost pushes Wall Street into the red

Good economic results made investors fear for a more aggressive stance by the Fed.

Wall Street closed down this Tuesday, failing to maintain the gains recorded in early trading, with growing concerns about the US Federal Reserve’s (Fed) plans to raise interest rates.

The Dow Jones fell 0.54% to 31,148.07 points, with the broad S&P 500 index also losing 0.40% to close at 3,908.55 points. The Nasdaq Composite Index fell 0.74% to 11,544.91 points.

The Institute for Supply Management’s services index unexpectedly rose from 56.7 to 56.9 points, underlining the resilience of the US economy but also fueling fears that the Fed will push ahead with sharp interest rate hikes to counteract inflation.

“The good economic news means the Fed could stay very aggressive,” Matt Maley of Miller Tabak & Co. explains to Bloomberg.

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