With the U.S. jobless rate touching 50-year lows, why is the stock market plunging? The short answer is inflation.
"I think the main fear is that if the economy is still very strong, jobs are still being gained, and the unemployment rate remains low, the response from the federal reserve is going to be to raise interest rates even higher,” said Audrey Guo, professor of economics at Santa Clara University.
Higher interest rates to try and slow our economy, something Wall Street doesn't like, with the goal to curb inflation even if it hurts your personal bottom line. That's why even as tech jobs are on the rise, tech stocks have been on the decline. The concern being that as interest rates go up, people will spend less money on tech products.
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