A trader works on the floor of the New York Stock Exchange in New York City.
Andrew Kelly.
The stock market plunged on Wednesday as investors worried about rising interest rates.
The Federal Reserve's December meeting minutes show unanimous support for the start of interest rate hikes.
On Wednesday, the probability of a March rate hike by the Fed increased to 72%.
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The US stock market fell on Wednesday as investors began to take the prospect of higher interest rates more seriously.
The yield on the 10-year US Treasury increased to 1.71%. The minutes from the Federal Reserve's December meeting helped to accelerate the move higher.
The minutes of the Fed's last meeting showed that the Fed is likely to raise interest rates sooner than expected and shrink its balance sheet in the next few years. According to fed futures trading contracts, the probability of a March interest rate hike went from 25% to 70% on Wednesday.
The minutes show that participants thought it would be appropriate to increase the federal funds rate sooner or at a faster pace than they had thought.
"Seems like the Fed wants to move quicker than it has in the past and yields are moving higher at the prospects of a quicker tightening timeline," said Lawrence Gillum of the Fed's minutes.
The US indexes stood at 4:00 pm. The close is on Wednesday.
Tech stocks are seeing the most volatility as yields rise. Ark Invest's flagship fund fell as much as 7% in Tuesday's trading session and was down an additional 7% in Wednesday trades, showing the risk-off environment for the sector.
Despite strong employment figures, the down day for stocks came. Private-sector job growth in December was 807,000, more than double estimates, and well ahead of November's gain of 505,000. The job growth was led by the leisure and hospitality industries.
Despite a decline in stock price, Charlie Munger's Daily Journal continues to buy more stock. As of December 31, the firm's stake in the Daily Journal's portfolio was 28%.
Jeff Gundlach, a billionaire investor, warned against investing in China because of the possibility of assets being taken away by the government. There have been headaches for public-listed companies like Didi and Alibaba because of the regulatory changes in Beijing.
In a Tuesday post, the company said it's introducing a feature called First Trade Recommendations to help new investors begin their financial journey.
The company said it would issue a "bividend" to its shareholders later this year.
West Texas Intermediate crude oil rose as much as 1.05%. The international benchmark for crude oil, called Brent, jumped as much as 1.04%.
The price of gold fell to $1,810.10 per ounce.
Business Insider has an original article.
