The focus shifts back to emerging markets Thursday after the Federal Reserve on Wednesday announced a second tapering of its bond buying program, reaffirming that the days of easy money are coming to an end.
The Fed's move to trim another $10 billion from its once-$85 billion-a-month program was expected as a small step forward. But for emerging markets, adjusting to a world with less Fed liquidity has created pain—particularly in those with current account deficiencies, weak currencies and inflation.
(Read more: Fed decides to taper)
When the Fed statement was released at 2 p.m. ET, stocks were already lower on the day, responding to a reversal in emerging markets as traders worried that recent central bank moves would not be effective. The market then took another leg lower, with the S&P 500 falling 1 percent to 1,774 and the Dow down 1.2 percent to 15,738.