Dow closes 500 points lower, Nasdaq sheds 3% as Fed Chair Powell signals intent to continue hiking rates

Pro Picks: Watch all of Wednesday's big stock calls on CNBC
Pro Picks: Watch all of Wednesday's big stock calls on CNBC

Stocks tumbled Wednesday after Federal Reserve Chair Jerome Powell said inflation was still too high and indicated that the central bank has more rate hiking ahead.

The Dow Jones Industrial Average slid 505.44 points, or 1.55%, to settle at 32,147.76. The S&P 500 dropped 2.5% to close at 3,759.69, while the Nasdaq Composite dove 3.36% to finish at 10,524.80.

The Fed implemented another 0.75 percentage point rate increase Wednesday afternoon, and Powell said in a press conference that its inflation fight was far from done.

"We still have some ways to go and incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected," he said.

Powell added that it was "premature" to talk about pausing hikes.

"We have a ways to go," said the central bank chair.

Stocks initially rallied following the rate hike when the Fed's accompanying statement hinted at a possible policy change in the future. "In determining the pace of future increases in the target range, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments," the statement read.

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But traders' hopes were dashed by Powell's still-tough talk on inflation.

"The tone of Fed Chair Jay Powell's comments was quite hawkish, which means the Fed still has a way to go to fight inflation, and the level of interest rates will be higher than previously expected," said Jack McIntyre, portfolio manager at Brandywine Global. "There were no hints of dovishness to indicate the Fed may be poised to pause."

Consumer discretionary and information technology stocks were among the worst performers of the day. Both S&P 500 sectors shed more than 3%. Amazon, Netflix and Meta Platforms tumbled nearly 5% each. Tesla and Salesforce fell 5.6% and 6.1%, respectively.

The Fed's rate decision came after the release of strong jobs data, with better-than-expected private payrolls data for October painting a resilient labor market. The JOLTS report Tuesday also conveyed a tight jobs market despite the Fed's aggressive tightening clip.

The Dow is coming off a record October, rallying nearly 14% for its best month since 1976. The S&P 500 and Nasdaq had gained about 8% and 3.9%, respectively, to snap a two-month losing streak. With Wednesday's losses, the 30-stock index is down more than 11.5%, while the S&P 500 and Nasdaq are off by 21.1% and 32.7%, respectively, year to date.

Lea la cobertura del mercado de hoy en español aquí.

Dow sinks 505.44 points, Nasdaq dives 3.36%

Stocks closed lower in a volatile trading session as the Federal Reserve delivered another 75 basis point rate hike and hinted at its intentions to continue hiking.

The Dow Jones Industrial Average slid 505.44 points, or 1.55%, to settle at 32,147.76. The S&P 500 dropped 2.5% to close at 3,759.69, while the Nasdaq Composite tumbled 3.36% to finish at 10,524.80.

— Samantha Subin

Tech stocks among biggest market losers

Tech stocks tumbled Wednesday, dragging down the Nasdaq Composite by roughly 3% after the Federal Reserve indicated it has more work to do.

The S&P 500's information technology sector shed 3.2%, while consumer discretionary tumbled 3.5%.

Laggards on the market included big technology stocks Apple, Alphabet and Microsoft, which slumped more than 3% each. Amazon, Netflix and Meta Platforms toppled more than 4% each, while Tesla and Salesforce shed 5.6% and 5.9%, respectively.

Beaten-up semiconductors Nvidia and Advanced Micro Devices also fell.

— Samantha Subin

Big volume surge as market sells off post Fed decision

Trading volume surged Wednesday after the Fed delivered its latest interest rate decision.

The widely followed SPDR S&P 500 ETF (SPY) — which tracks the benchmark index — traded about 100.3 million shares with roughly 20 minutes left in the session, topping its 30-day average volume of 100.23 million. At this rate, the SPY will close well above that average.

FactSet data showed that volume was fairly muted ahead of the decision, with the SPY trading just 34 million shares from 9:30 a.m. ET until 1:59 p.m. ET. From 2 p.m. to 2:59 p.m., volume surged to 72.49 million.

— Fred Imbert

Indexes down entering final 20 minutes of trading day

The major indexes remain down heading into the final 20 minutes of trading.

The Dow is down 1%, while the Nasdaq and S&P 500 have dropped 2.6% and 1.9%, respectively.

The 10-year treasury note added 4 basis points, sitting at 4.092%.

— Alex Harring

S&P 500, other indexes react with volatility during Powell press conference

The S&P 500 reacted to Fed chair Jerome Powell's press conference with all sectors sliding into negative territory after initially moving up after the statement.

The S&P 500 is down 1.2% as of 2:55 p.m.

The Dow and Nasdaq are also both down 0.5% and 1.5%, respectively.

— Alex Harring

Stocks fall as Powell says terminal interest rate will be higher than previously expected

In a briefing with reporters on Wednesday following a fourth consecutive 0.75 percentage point rate hike, Federal Reserve Chairman Jerome Powell said the central bank's ultimate target for increases in interest rates has gone up.

"We still have some ways to go and incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected," he said.

Stocks slipped following the comment, which signals that interest rates will continue to march higher and likely stay at a higher level than expected for longer as the Fed tames inflation. That reversed gains from earlier in the afternoon when traders digested the Fed statement as more dovish and hoped that rate hikes would be smaller in the future.

The Dow Jones Industrial Average was up about 60 points but pared gains. The S&P 500 also slumped from a post-rate hike spike and was up only 0.09%. The Nasdaq was slightly in the red.

—Carmen Reinicke

S&P 500 sectors move coming off Fed statement

The 11 sectors in the S&P 500 were trading up as investors found optimism in the latest statement from the Fed.

Utilities was performing the best, up 1.4%. Consumer discretionary added the least, up 0.1%.

Consumer discretionary and energy have both been trading near their respective flatlines following the statement, at points flashing red.

— Alex Harring

Dollar retreats after Fed statement

The dollar index fell to its lowest level since Friday following the release of the Federal Reserve statement.

The greenback has been bolstered this year by the Fed's rate hikes, and the latest Fed statement signaled that the central bank may slow rate increases going forward.

The dollar index was last at 110.73, down 0.7% for the session.

— Jesse Pound, Gina Francolla

10-year Treasury yield falls below 4%

Treasury yields dropped after the Fed signaled a possible slowdown in the pace of increases.

The yield on the 10-year Treasury traded 7 basis points lower to 3.97% after trading above 4% earlier in the day. The policy-sensitive 2-year Treasury yield fell 9 basis points to 4.44%

"'Cumulative tightening' and 'lagged impact' suggest that this will be the last 75 bp hike and in December the move will most likely be 50 bp," Ian Lyngen, BMO's head of U.S. rates, said in a note.

— Yun Li

Stocks leap following Fed's rate hike, central bank's statement hinting at possible policy change

Stocks wiped away their losses and turned positive after the Federal Reserve issued its fourth consecutive rate hike of 0.75 percentage point and hinted at a potential policy change. 

The S&P 500 rose by 0.65%, while the Nasdaq Composite gained nearly 0.4%. The Dow Jones Industrial Average jumped about 300 points.

In its latest statement, the Federal Reserve indicated it "will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments."

-Darla Mercado

Retail investors buying at summer highs, Vanda says

Retail investors have continued buying stocks over the past week, reaching a weekly high that matches levels seen in May and August, according to Vanda Research.

Marco Iachini, senior vice president, pointed to earnings as a main driver of activity, noting many of the favorite retail stocks saw sell-offs after releasing disappointing forward guidance. But Iachini said it was seen as a "buy-the-dip opportunity" as opposed to a capitulation.

Retail investors were purchasing U.S. securities at a rate of $1.5 billion per day as of Tuesday.

He also said investors typically chase momentum whenever risk rallies coming off periods of poor performance in an attempt to pare losses. He likened the action to "F.O.M.O.," or the fear of missing out.

Iachini said retail investors will be watching the Fed meeting for comments that could indicate future plans for interest rates as well as the next consumer price index data.

— Alex Harring

Why a Bernstein analyst disagrees with bulls on Tesla

Bernstein analyst Toni Sacconaghi says Tesla's stock has a downside of 34% because its software performance is not as strong as some believe.

An analysis found the company's software attributes about 1.3% of total company revenues. That amounts to about $290 million per quarter.

Sacconaghi is in the minority in calling Tesla an underperformer, as only 10% of analysts see it as that or a buy, according to FactSet. Meanwhile, 61% see it is a buy or overperformer and 29% a hold.

CNBC Pro subscribers can read more here.

— Alex Harring

Big Tech suffers worst five-day stretch ever, Goldman Sachs says

Big Tech has had a terrible five-day stretch, with companies encompassing the group losing nearly $1 trillion in market cap, according to Goldman Sachs. That's the biggest-ever market cap loss for the group over that time period.

The losses come after a slew earnings-driven sell-offs for companies such as Meta Platforms, Alphabet, Microsoft and Amazon.

— Fred Imbert, Michael Bloom

Stocks making the biggest moves midday: Tupperware, Chegg, Paramount

These are some of the companies making big moves in midday trading:

Tupperware Brands — Shares of the household storage products maker plunged 42% after a third-quarter earnings miss. The company also said it may not be able to comply with the covenants in its credit agreement, raising "substantial doubt" about its "ability to continue as a going concern," the earnings release said.

Chegg — The education stock surged more than 22.2% after the company beat estimates on the top and bottom lines for the third quarter. Adjusted gross margin and subscribers both grew year over year.

Paramount Global — Shares of the media company dropped more than 11% after quarterly results missed expectations, as it suffered from cord-cutting and a drop in advertising revenue. Paramount said revenue for its TV media segment was down 5% compared to the previous quarter, as pay-TV subscriber numbers declined.

For more big midday movers check out our full list here.

— Tanaya Macheel

Evercore ISI says Block is tactically underperforming

Evercore ISI called Block a tactical underperformer and said there are reasons to sell ahead of its third-quarter earnings Thursday.

The firm set a target price of $49 for the stock, which would be a 16.9% decrease compared to its last closing value.

Evercore ISI said the company would likely struggle to sustain the rapid pace of innovation that previously drove Cash App growth. The firm expects its compound annual growth rate in seller growth profit to slow to 21%.

Increasing competition and foreign exchange challenges were also headwinds for the company, the firm said.

The stock is down 63.5% this year.

— Alex Harring

Seasonality could help rally continue, Bank of America says

The market's rally has reached a strong seasonal period that could propel stocks even higher, Bank of America's Savita Subramanian said in a note to clients on Tuesday evening.

"Seasonality is favorable for stocks into year end, with December historically being the strongest month of the year (+2.3% avg. & 79% positive hit rate)," the note said. "But risks remain: our bull market signposts continue to show few signs of a market bottom."

One issue for stocks is that the equity risk premium fell to a four-year low last month, according to Bank of America. The metric usually climbs during recessions, which represents investors adjusting to an expected decline in earnings.

— Jesse Pound, Michael Bloom

Chart analyst Katie Stockton sees relief rally into the year end

Katie Stockton, founder and managing partner at Fairlead Strategies, believes the stock market could extend the relief rally for several weeks into the end of 2022.

"We're looking for a retest of the 200-day moving average, but really adhering to that short-term momentum indicator to help us know if we need to start managing risk again," Stockton said on CNBC's "Squawk Box" Wednesday.

She said volatility is likely not going to pick up until the new year, and October has the potential to be a killer of this bear market.

— Yun Li

Chegg surges after earnings beat

Shares of education company Chegg soared 24% after a stronger-than-expected third quarter report.

Chegg's adjusted earnings were 21 cents per share on $164.7 million of revenue. Analysts surveyed by Refinitiv were expecting 14 cents per share on $158.3 million of revenue.

The company's adjusted gross margin rose to 73.0% from 61.2% a year ago, according to StreetAccount, and subscribers jumped 9% year over year.

Piper Sandler analyst Arvind Ramnani, who has a neutral rating on the stock, said in a note that the company is showing an ability to raise prices.

"The reaction to price increases for Chegg Study that was initiated back in mid-July (prices rose from $14.95 to $15.95 for monthly subscribers) has been favorable. Management notes that it has not seen a reduction in conversion for new customers, an immaterial number of non-renewals of the existing base and an increase in bundle additions."

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— Jesse Pound

Boeing jumps after favorable comments about full-year positive free cash flow

Shares of Boeing jumped as much as 5.5% as Wall Street cheered comments made at the company's investor day about full-year positive cash flow.

The company said that it expects to have free cash flow of $10 billion by 2025-2026, according to StreetAccount. After 2026, it expects to return cash to shareholders and will not need equity to get there. Boeing is forecasting that in will return to $100 billion in revenue with 10% margins in 2026, and that deliveries will have picked back up.

It's also focusing on mitigating risk as its MAX aircraft returns to service, as well as liquidity and fixed price development programs.

—Carmen Reinicke

Tech stocks slide ahead of Fed rate hike

Tech stocks bared the brunt of Wednesday's early losses, as traders prepared for another Federal Reserve rate hike and what that means for the growth-oriented sector.

The S&P 500's information technology, consumer discretionary and communication services sectors tumbled nearly 1% each, while the tech-heavy Nasdaq Composite slid 1%.

Shares of Netflix and Meta Platforms were among the biggest tech laggards, falling more than 2% each. Salesforce's stock tumbled 3.5%, while Apple, Amazon, Alphabet and Microsoft shares shed at least 1% each.

— Samantha Subin

MetLife, Corteva trading at all-time highs

Two stocks traded near all-time highs during Wednesday's trading session.

That included MetLife, which rose to levels not seen since it went public in April 2000. Corteva was last trading at highs not seen since its spin-off from DowDuPont in May 2019.

Nine stocks also hit fresh lows, including shares of Paramount, which traded at lows not seen since May 2020.

Other stocks notching fresh lows included:

  • Alphabet C share trading at lows not seen since January 2021
  • Alphabet A share trading lows not seen since January 2021
  • Newell Brand trading at lows not seen since May 2020
  • Estee Lauder trading at lows not seen since July 2020
  • SVB Financial Group trading at lows not seen since September 2020
  • Baxter trading at lows not seen since April 2017
  • Zebra Technologies trading at lows not seen since May 2020
  • Essex Property Trust trading at lows not seen since November 2020

— Samantha Subin, Chris Hayes

Here's how the market has done on Fed day during Powell's tenure

Bespoke Investment Group compiled data on how well the market has done on Fed days during Chair Jerome Powell's tenure. During that time, the S&P 500 has averaged a 0.29% gain on Fed days, "leaving him behind Bernanke but ahead of Yellen and Greenspan."

Fed days have been volatile in 2022, with the S&P 500 posting moves of more than 1% in five of the last six.

— Fred Imbert

Decliners lead advancers 3-1 at NYSE

Market breadth was negative in early trading, with roughly three New York Stock Exchange-listed stocks declining for every advancer. Overall, 2,006 NYSE-listed names fell, while just 746 advanced.

— Fred Imbert

Energy leading stocks lower

The S&P 500 energy sector lagged in early trading Wednesday, falling about 1.7%, as traders braced for the Fed's latest monetary policy decision. Real estate also fell more than 1%.

Overall, every S&P 500 sector traded lower on the day.

— Fred Imbert

A ‘data dependent’ Fed on future hikes could move markets higher, Cramer says

The market is already pricing in a 75 basis point hike from the Federal Reserve, but it could rally if Chair Jerome Powell indicates future increases will be based on economic data, CNBC's Jim Cramer said Wednesday.

"Three-quarters and data dependent, I think we are home free, but three-quarters and more vigilant, then I think we have a sell-off," Cramer said on "Squawk Box."

While there hasn't been data to support the theory that the economy is cooling off, Cramer hopes the central bank takes a wait-and-see approach.

"Tech has been bad, but non-tech has been good," Cramer said. "I would hate to see non-tech join tech in the decline."

— Michelle Fox

Rogers shares tumble as DuPont deal collapses

Shares of Rogers Corp, the engineering materials maker, tumbled on Wednesday after a planned $5.2 billion sale of the company to DuPont De Nemours was terminated.

"Rogers is currently evaluating all options to determine the best path forward in response to DuPont's notice," the company said in a statement.

DuPont said after the close on Tuesday that the companies have been unable to obtain clearance from all required regulators in a timely manner. The deal was first announced on Nov. 1 of last year.

Rogers shares cratered more than 43%, while DuPont's stock rose about 6%.

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— Tanaya Macheel

Stocks open lower as market braces for Fed decision

Stocks opened lower as Wall Street awaited the Fed's lastest policy decision.

The Dow Jones Industrial Average fell 95 points, or roughly 0.3%. The S&P 500 futures and Nasdaq Composite edged down 0.3% and 0.2%, respectively.

— Samantha Subin

As Fed meets, traders are betting it stops hiking rates at just above 5% next year

Investors in the fed fund futures market are betting the Federal Reserve will take its fed funds rate just above 5% before stopping rate hikes next year.

The Federal Reserve was meeting Wednesday and is expected to raise its fed funds rate by 75 basis points when it releases a policy statement at 2 p.m. ET.

The May contract was priced for 5.02% Wednesday morning. The Fed is currently targeting fed funds in a range of 3% to 3.25%.

"Over the last two weeks, it's been bouncing around 5%," said Ben Jeffery, BMO rate strategist. He said the futures market is also pricing for a 75 basis point rate hike for Wednesday afternoon and is giving more than 50/50 odds to a 50 basis point hike in December. A basis point equals 0.01 of a percentage point.

"The base case is 75 today, 50 in December and 25 in February," said Jeffery.

Market pros expect the Fed will also signal Wednesday that it could begin raising rates at a slower pace, starting in December.

That signal could come from Fed Chairman Jerome Powell when he speaks to the media at 2:30 p.m. ET.

"Until we hear from Powell at 2:30, I think this is just noise," said Michael Schumacher of Wells Fargo.

— Patti Domm


U.S.-listed China stocks rise on reopening speculation

Shares of Chinese companies listed in the U.S. rose again during Wednesday's premarket trading amid rumors that China may pivot from its strict zero-Covid policy.

The KraneShares CSI China Internet ETF gained more than 2%, building on Tuesday's 5.5% advance. The iShares China Large-Cap ETF added roughly 1%.

Individual stocks including Alibaba and Pinduoduo added 1% each.

— Samantha Subin

KeyBanc expects a more difficult holiday season for toy industry

This holiday season, the toy industry won't see the double-digit growth it enjoyed for the past two years, according to KeyBanc Capital Markets.

Toy sales in 2020 and 2021 were fueled by stimulus, increased savings and stay-at-home activity.

"We believe current macroeconomic uncertainty, inflationary pressures, and restrictive financial conditions create a more difficult environment," analyst Bradley Thomas wrote in a note Tuesday.

Consumers have already been pulling back from discretionary purchases at Target and Walmart this year, he noted. Mattel and Hasbro have also recently said they are preparing for more promotions compared to last year.

Thomas believes Ollie's Bargain Outlet Holdings is best positioned this season thanks to its high-quality and robust inventory and closeout deals.

— Michelle Fox

Paramount Global, Estee Lauder and Caesars Entertainment among stocks making the biggest premarket moves

Companies reporting earnings results were among the stocks making the biggest moves during Wednesday's premarket.

Paramount Global – The media company's stock dove 8% in the premarket after it missed top and bottom line expectations for the recent quarter.

Caesars Entertainment – Caesars' stock rallied 7.7% in premarket trading after the resort operator topped analyst estimates for both the top and bottom lines. Caesars also said its digital betting business turned profitable on an adjusted basis for the quarter, 12 months ahead of the company's target.

Estee Lauder – The cosmetics maker's stock sank 9.5% in premarket trading after it issued a weaker-than-expected outlook. Estee Lauder cited higher costs, a stronger U.S. dollar and Covid lockdowns in China among the reasons for the disappointing forecast.

— Peter Schacknow, Samantha Subin

ADP private payrolls, wages increased in October

The ADP Employment report for October showed that the private labor market is maintaining its strength even as interest rates rise and the Federal Reserve looks to cool off high inflation.

Private sector employment increased by 239,000 in October, the Wednesday report showed. The service sector added the bulk of jobs during the month, with large gains in hiring in leisure and hospitality and transportation, trade and utilities.

In addition, annual pay was up 7.7% on the year, but the momentum in wage gains is ebbing, according to the report. People who changed jobs were able to get a 15.2% pay increase in October, down from a 15.7% jump in September.

The ADP report comes just days before October nonfarm payrolls are released by the Bureau of Labor Statistics.

—Carmen Reinicke, Jeff Cox

Advanced Micro Devices jumps 6% despite earnings miss

Shares of Advanced Micro Devices rose 6%in premarket trading after posting results after the bell Tuesday that missed on both the top and bottom lines.

While the chipmaker fell short of Wall Street's expectations for its fiscal third quarter, revenue from all four of its business segments came in ahead of what the company projected in its October warning.

AMD reported adjusted earnings of 67 cents per share on $5.57 billion in revenue. Analysts surveyed by Refinitiv had anticipated earnings of 68 cents a share on $5.62 billion in revenue.

On a year-over-year basis, revenue grew 29%.

— Samantha Subin, Jordan Novet

Wheat futures fall as Russia agrees to resume grain exports

Wheat futures fell sharply on Wednesday morning after Russia announced that it would resume grain exports on the Black Sea.

Russia withdrew from an export deal over the weekend, but said Wednesday it is has received assurances from Ukrainian officials that the shipping lanes would not be used for military purposes. Ukraine is a major global wheat exporter, and Russia's invasion has disrupted supply.

Wheat futures in Chicago fell 6% on Wednesday, though they are still higher on the week. Corn futures dipped about 2%.

— Jesse Pound, Holly Ellyatt

Mortgage demand flat even as rates dip

Mortgage demand was flat last week, with application volume pulling back 0.5% over the previous week even as rates dropped, according to the Mortgage Bankers Association's seasonally adjusted index.

Rates, meanwhile, fell slightly but hovered near a 22-year high.

Refinance applications rose 0.2% for the week but are still down 85% year over year. Mortgage applications to buy a home fell by 1%. That represents a 41% decline over the same week last year.

— Diana Olick, Samantha Subin

Twilio down 4% after Bank of America double-downgrades

Shares of Twilio, the maker of programmable tools allowing businesses to send and receive calls and texts, dropped nearly 4% in pre-market trading.

The dip followed a double-downgrade from Bank of America and price target cut for the stock. While the bank still expects share value to go up 13% in the next year, that's down from the previously expected 133%.

Bank of America's downgrade comes on the back of a survey showing just over half of respondents plan to spend the same or less on the company's platform in 2023 compared to this year.

CNBC Pro subscribers can get the full story here.

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— Alex Harring

CVS shares pop on earnings beat

Shares of CVS Health popped 5% after the pharmacy operator reported third-quarter earnings and revenue that beat expectations.

CVS earned $2.09 per share on revenue of $81.16 billion. Analysts expected earnings per share of $1.99 on revenue of $76.75 billion, according to Refinitiv.

The company also raised its full-year outlook.

— Jack Stebbins

Salesforce going down 'Microsoft pathway,' Macquarie says

Salesforce got an outperform rating from Macquarie, with analyst Sarah Hindlian-Bowler noting that the company's recent C-suite moves likely saved itself 10 years of underperformance and put it "down the Microsoft pathway."

Additionally, the analyst thinks Salesforce is less likely to be hit by global macro headwinds while entering a period of "graceful maturation."

CNBC Pro subscribers can read the full story here.

— Alex Harring

World’s largest container shipping firm Maersk, a barometer for global trade, warns of ‘dark clouds on the horizon’

Maersk, the world's largest container shipping firm, on Wednesday posted record profits for the third quarter on the back of high ocean freight rates, but noted a slowdown in demand.

The Danish giant, widely seen as a barometer for global trade, reported earnings before interest, tax, depreciation and amortization (EBITDA) of $10.9 billion for the quarter, above consensus analyst projections of $9.8 billion and up around 60% from the same period a year ago.

CEO Søren Skou said the "exceptional results" this year were driven by a continued rise in ocean freight rates, but said it was clear that these have peaked and warned of "dark clouds on the horizon."

Read the full story here.

- Elliot Smith

European markets muted as investors focus on the Fed's next move

European markets were cautious on Wednesday as global investors focused on the conclusion of the Fed's policy meeting.

The pan-European Stoxx 600 index was fractionally higher by mid-morning in London, having given up opening gains of around 0.4%. Health care stocks added 1.2% while autos shed 0.5%.

- Elliot Smith

Ed Yardeni says he sees another 75-basis-point Fed hike in December

The Fed may hike 75 basis points again in December, says Ed Yardeni
The Fed may hike 75 basis points again in December, says Ed Yardeni

Federal Reserve Chairman Jerome Powell could indicate another 75-basis-point hike is coming in December after an expected increase in November, Ed Yardeni of Yardeni Research said.

After the predicted hike in December, Powell may hint that "the Fed funds rate is in restrictive territory now, and that they're just going to keep it there for a while to see how it impacts the economy," he said on CNBC's "Squawk Box Asia."

Yardeni said he thinks the Fed wants to frontload their hikes instead of raising rates by 50 basis points, followed by two 25-basis-point increases.

— Abigail Ng

CNBC Pro: Goldman's Currie reveals 'the best' hedge against inflation, rate hikes and geopolitical risks

Goldman's Jeff Currie says there's one investment that can protect investors from rising interest rates, inflation, and geopolitical risk.

Currie, global head of commodities research at Goldman Sachs, said it has 20-30% growth potential in the short term, with additional upside risks to the price target.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Stocks making the biggest moves after hours

These are some of the companies making big moves in extended trading.

  • Match Group — Shares of the dating app operator jumped 16% after the company posted higher-than-expected revenue for the third quarter, according to StreetAccount.
  • Airbnb — The lodging stock fell about 6.8% after hours even after the company reported better-than-expected quarterly earnings and revenue.
  • Advanced Micro Devices — The chipmaker saw its shares rise more than 4% after quarterly results from all four of its business segments were better than the company had called in its October warning.

Stock futures open flat

Stock futures were flat on Tuesday night as investors looked ahead to another Federal Reserve at the conclusion of its two-day policy meeting Wednesday.

Futures tied to the Dow Jones Industrial Average were lower by 20 points. S&P 500 futures and Nasdaq 100 futures traded just below the flat line.

— Tanaya Macheel