U.S. stocks slipped on Friday after news that India's central bank increased key lending and borrowing rates. The move spurred anxiety that other countries may do the same.
The Dow Jones Industrial Averages tumbled 55 points, or 0.5 percent, at 10725 by midday. The Standard & Poor's 500-share index was also hard hit, with all sectors in uniform red. It fell 0.7 percent. The Nasdaq Composite took a dive as well, falling 0.9 percent.
The repurchase rate hike which was put into effect on Friday was an unexpected and unannounced move on India's behalf. The Reserve Bank of India pushed its key lending rate from 3.50 percent to 5 percent.
The move is significant in and of itself but what is particularly worrying for global economics is that China may follow their lead.
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