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Stocks drop sharply on Fed stimulus fears
Stocks drop sharply on Fed stimulus fears

NEW YORK — Encouraging signs for the labor market caused alarm on Wall Street as investors sped up a broad sell-off, fueled by worries the Federal Reserve will soon scale back its stimulus. Major U.S. indexes closed sharply lower Thursday as yet another hopeful sign of a recovering U.S. economy led traders to believe the central bank will begin slowing its morphine drip of easy money as early as next month. "Investors are waking up to the reality that this is going to be happening, and September is not very far away," said Jack Ablin, chief investment officer at BMO Private Bank. The Dow Jones industrial average sank 225.47 points, or 1.47%, to 15,112.19, its biggest...