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Fed fear factor could keep markets on edge

VIDEO1:3901:39
Stocks seek rebound after Tuesday selloff

Fear of the Fed could be a driving force for markets again Wednesday.

The fallout from diverging central bank policies sparked a dollar rally and stock market selloff Tuesday, as traders reacted to the European Central Bank's bond-buying program and the fact the Fed could signal it is getting even closer to a rate hike when it meets next week.

As the dollar rose, the euro slumped to $1.07 against the greenback, edging close to parity much sooner than some strategists had expected. The S&P 500 was whipsawed, losing 1.7 percent to 2,044, in its worst selloff since Jan. 5.