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Nov. 30, 2021, 11:03 a.m. EST

Dow skids nearly 600 points and stock market's losses deepen as Fed's Powell says faster taper may be warranted amid omicron

U.S. stocks saw losses sharpen late-morning Tuesday as Federal Reserve Chairman Jerome Powell suggested that a more rapid tightening of financial conditions may be warranted as the omicron variant of the coronavirus that causes COVID-19 complicates the economic recovery and potentially intensifies supply-chain bottlenecks. The Dow Jones Industrial Average (DOW:DJIA) was down 570 points, or 1.6%, at 34,567, the S&P 500 index (S&P:SPX) was trading 1.6% lower at 4,581, while the Nasdaq Composite Index (NASDAQ:COMP) was trading 1.7% lower at 15,520. During Tuesday's testimony in front of the Senate Banking Committee as a part of the CARES act, Powell said that risk of persistent inflation has risen and said that the central bank may need to speed up its reduction of asset-purchases, which could set the table for faster interest-rate increases by the Fed, potentially bearish for risky assets in the short term.

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