Rising Rates Hit Small Firms Hard, Slowing Jobs and Risking More Bankruptcies
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Smaller firms struggling under higher interest rates, seen in equal-weighted S&P 500 down 5%
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Over half of employment growth comes from small firms with under 100 employees
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Corporate bankruptcy filings this year already exceed 2020 levels
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Once pandemic stimulus dries up, more "zombie" firms could be vulnerable
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Tighter credit hits small firm profits first, leading to weaker employment growth