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Wall Street confused about Fed rate future: Trader

Wall Street's sharply negative reaction Wednesday to weaker-than-expected December retail sales was due to confusion about whether the Fed may delay its interest rate hike, TJM Institutional Services' managing director told CNBC.

"Remember when we were supposed to be worried, the stock market was supposed to be worried, that rates are going up. Now we're pushing back those back in the stock market," Jim Iuorio said.

"The stock market is confused about change. And I don't think it's a big deal."

Dow futures were down as much as 250 points after retail sales showed their biggest drop since last January. The 10-year Treasury yield broke through October lows, dipping below 1.80 percent.

Oil prices continued their slide in early trading, while copper sank to 5½-year lows overnight. Copper is often seen as a bellwether for global economic health.

The euro fell in early trading below its 1999 launch rate against the dollar for the first time in over nine years, after an adviser to Europe's highest court said an ECB bond-buying program was legal under certain conditions.

Volatility has certainly been back on Wall Street these days, highlighted by Tuesday's dramatic reversal that saw the Dow Jones Industrial Average up 282 points and down 143 points before closing modestly lower.

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