Global stocks head for another week of losses after the Fed's rate hike, as inflation and growth fears persist

In a week of historic central bank action to tackle inflation, stocks are set to end the week in the red.

The central bank monetary policy moves are being watched by investors. The European Central Bank said it's preparing an anti-crisis tool as bond yields surge after the Federal Reserve hiked interest rates.

The US sell-off was led by futures on the Nasdaq 100. The S&P 500 and the Industrial Average fell.

Chris Beauchamp, chief market analyst at IG Group, said that the stock market seems stricken by indecisiveness. These are confusing times and investors can be excused for feeling a bit bewildered. Things seem to be on a precipice.

European investors seem indecisive after the emergency meeting of the European Central Bank.

The main index in Europe, the STOXX 600, was down 1.39%, with Paris' CAC 40 falling 1.51%. The UK's blue chip index has held up relatively well over the past few months.

The global stock market was headed for a third weekly loss after those movements dragged it into the red. Hong Kong's Hang Seng fell 2.57% and the Shanghai Composite was down 0.61%, but Japan's Nikkei 225 was up 0.40% at the end of the day.

"We are still living in the same world we were 24 hours ago, one where growth is slowing, earnings are falling and prices keep on rising," he said. We have a way to go before global equities look to be really good value, and this is not a great environment for stocks.

Other asset classes felt the same way.

Two-year Treasury notes rose 3.4 basis points to 3.3134% and 10-year Treasury notes fell 1.4 basis points to 3.381%. The dollar index climbed as it looked to set a new 20-year high.

The European Central Bank held an emergency meeting on Wednesday to discuss how to stop borrowing costs from rising too quickly in countries like Italy and Germany.

Italy's benchmark 10-year bond yield rose 13 basis points on the day to to 4.05%, having dropped by as much as 30 basis points the day before, after the European Central Bank pledged to accelerate the completion of the design of a new anti-fragmentation instrument.

The euro fell against the dollar after the surprise announcement from the European Central Bank. The Bank of England is expected to decide on a rate later in the day.