Global stocks tumble.
Global shares follow Wall Street lower in rate hike fears
By YURI KAGEYAMA
AP Business Writer
TOKYO (AP) – According to the Associated Press, Global shares have fallen after stocks tumbled on Wall Street as worries persist about higher interest rates and their tightening squeeze on the global economy. U.S. futures edged higher while oil prices fell. New Zealand’s central bank raised its benchmark interest rate. Higher rates hurt investment prices and raise the risk of a recession by slowing business investment and consumer spending, but U.S. employment and consumer spending have weathered higher interest rates well. On Tuesday, the S&P 500 fell 2% in its sharpest drop since the market was selling off in December. The Dow industrials lost 2.1%, while the Nasdaq composite sank 2.5%.