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Prospects of US rate hikes fuel market division

Fed rate hike talk divides Wall Street

The divergence in play for much of this year is a theme likely to dominate in the days and months ahead.

The market is grappling with the Federal Reserve and prospects of higher interest rates along with weak growth globally, or, as Cameron Hinds, regional chief investment officer at Wells Fargo Private Bank, put it, "Two negative arguments off of two different themes."

Last week, the Federal Open Market Committee repeated a pledge to hold interest rates near zero for a "considerable time" once the Fed is done with its asset-purchase program next month. The central bank also hiked its median estimate for the federal funds rate at the end of next year to 1.375 percent versus 1.125 percent in June.