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Australian Stock Gauge Slips Into Correction as Fed Spurs Drop

  • Tech gauge worst performer on main benchmark this year
  • Traders boosting bets that Reserve Bank will lift rates soon
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Australian stocks dropped, closing in a technical correction after the Federal Reserve flagged it will start raising interest rates in March.  

The benchmark S&P/ASX 200 Index slumped 1.8% on Thursday, taking its decline since its Aug. 13 record to more than 10%. The move comes a few days after New Zealand’s equity gauge entered a correction. The two countries’ bond yields surged as Fed Chair Jerome Powell didn’t rule out hikes at every meeting.