Chances of a June rate hike fell as the Federal Reserve said it would leave rates unchanged following its April meeting.
Before the Fed statement, the market saw a 32 percent chance of a rate hike in June, according to traders at the CME. Following the announcement, the probability of a June rate hike fell as low as 19 percent before bouncing back slightly.
The Fed said Wednesday after its April meeting that it expects only "gradual increases in the federal funds rate" and that it is "likely to remain, for some time, below levels that are expected to prevail in the longer run."
Thirty-day fed funds futures prices are widely considered a reliable indicator of U.S. monetary policy changes. CME's FedWatch tool tracks the target rates based on fed funds futures contract prices.
A reading above 50 percent indicates the market's guess for the next rate hike.
After the announcement, odds dropped in all months tracked by CME:
— CNBC's Anita Balakrishnan contributed to this report.