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S&P/TSX composite closes down more than 500 points, U.S. stock markets tumble lower


Rising fears around future economic growth weighed heavily on markets Friday, pushing Canada’s main stock index sharply down along with the commodities that underpin so much of it, while U.S. markets also dropped.

The S&P/TSX composite index ended down 521.70 points, or 2.75 per cent, at 18,480.98 in broad-based declines led by the energy sector, while U.S. markets were down about 1.7 per cent, as investor worries about rising rates reached new heights.

“The Fed and other central banks have made no bones about it, they want to tighten policy and put it to a restrictive condition,” said Steve Locke, chief investment officer of fixed income and multi-asset strategies at Mackenzie Investments.

Friday’s drop comes after the U.S. Federal Reserve raised its key interest rate by three-quarters of a percentage point Wednesday and warned of more to come, a move which, combined with rising…

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