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Higher interest rates and rising costs are a bad brew for stocks

Patti Domm

Stocks are facing the double headwinds of rising interest rates and rising input costs, which could slow down earnings growth and pressure margins. The 10-year Treasury yield touched 3 percent for the first time in four years, a wakeup call to investors that interest rates are continuing to move higher. Investors have been dumping stocks that miss on margins or offer disappointing outlooks even if earnings are good.