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Markets

Dow plunges 400 points on Fed and nuke fears

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Markets

Dow plunges 400 points on Fed and nuke fears

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COMING UP:Dow plunges 400 points on Fed and nuke fears

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Transcript

00:00:01
>> The Dow plunging almost 400 points Friday to cap off one of Wall Street's worst weeks all year. Reuters markets reporter, Rodrigo Campos says most of the exodus is tied to the Federal Reserve.>> People are seeing that the Fed is a little bit more willing to raise rates than they thought they were only a few days ago.
00:00:23
Boston Fed President Rosengren said that regardless of the weaker data out of the United States, the Fed was facing the probability that the economy here would overheat even, if the Fed took too long to act, even if he said that it had to be very slowly. That kind of talk made people think, okay, maybe this is for real and they are going to raise rates.
00:00:46
But that was only part of the reason for the sell-off and the biggest surge in Wall Street's fear gauge since June. A powerful nuclear test by North Korea, giving investors something new to worry about. All sectors were hit hard, but technology slammed the most after setting record highs twice this week.
00:01:05
Price Line, Amazon and Google parent Alphabet among the biggest point losers on the NASDAQ as investors cashed in on their recent winners And that's not all. A spike in interest rates on government debt around the world sparking yet another concern, a premature rise in debt cost that could choke off any global economic growth.
00:01:25
Big dividend payers like Verizon, investments that tend not to do well when rates rise were the biggest drag on the Dow as investors cope with the realization that the era of higher interest rates may finally be here.