U.S. stock-index futures declined sharply on Wednesday, with Dow futures down more than 100 points, as investors confronted less-than-expected earnings outlooks, worries about emerging markets and braced for the Federal Reserve's next move on stimulus.
"Earnings so far have been nothing to write home about, and it seems that no matter what, the market has found something imperfect even in the best of earnings," said JJ Kinahan, chief strategist at TD Ameritrade.
In addition, Turkey's currency has jumped against the dollar in the wake of that nation raising their interest rates, rattling investors. "There continues to be growing concerns over emerging markets and that we may have some problems there," he added.
Futures initially rallied sharply following news that Turkey's central bank had sharply raised its interest rates late Tuesday afternoon. In immediate reaction, Dow futures spiked as much as 150 points and the Turkish lira rose to 2.2 against the dollar.
In its first emergency meeting since 2011, Turkey's central bank hiked its overnight lending rate to 12 percent from 7.75 percent. The move is aimed at stemming the lira's sharp declines and follows an unexpected rate hike by India's central bank.