This Could be a Bad Day…

…for Wall Street. Sharply higher US interest rates have spooked many markets around the world:

NEW YORK (Reuters) – Stocks were set to sink at the open on Monday as fears the Federal Reserve (news – web sites) will raise interest rates as early as June weighed on markets around the world.

…Overnight in Japan, stocks fell sharply, with the TOPIX index posting its biggest percentage drop [of about 5%] since the September 11, 2001 attacks as the prospect of higher U.S. interest rates fanned fears of further Wall Street losses.

As I said the other day, it seems that we may now find out how robust the US economy is to higher interest rates.