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« Why the economic argument in favor of outsourcing is rejected | Main | Reuters »

May 07, 2004
I know the new jobs figure is being cheered 

Everywhere but Wall Street

When hiring increases and unemployment drops, investors worry that the Fed will move faster to raise interest rates to choke off any hint of inflation. Stocks, in turn, tend to decline when investors think interest rates will rise because increased borrowing costs cut into corporate earnings, making stocks seem more expensive.



Posted by P6 at May 7, 2004 11:39 PM
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