Dow's 666-point plunge looks bad, but the economy's fundamentals are still strong

Stock prices fell sharply from near record highs Friday, with the Dow Jones industrial average tumbling 666 points, or 2.5 percent, to close out the worst week on Wall Street in years.

The main trigger was growing concern about rising interest rates and inflation, and their impact on stocks going forward, as the yield on the 10-year Treasury note reached its highest peak in four years, analysts said.

But they said that many of the fundamental factors that have driven stocks higher - including rising corporate earnings - remain intact, and that Friday's trading had no signs of panic selling.

Indeed, they said the pullback was not surprising given the