Markets fall as Fed sees strengthened case for rate hike

Markets fell on Wednesday.

The S&P 500 fell 0.7 percent, the STOXX Europe 600 fell 1.1 percent and the Nikkei 225 fell 1.8 percent.

Oil fell, with US crude declining 2.8 percent.

The yield on the US 10-year Treasury note fell to 1.799 percent from 1.822 percent on Tuesday.

The Federal Reserve left interest rates unchanged as expected on Wednesday but said that “the case for an increase in the federal funds rate has continued to strengthen”.

“This is as close as you can get to a data-dependent Fed saying they are most likely to go in December,” said Brent Schutte, chief investment strategist of Northwestern Mutual Life Insurance Co.’s wealth-management unit.

After the Fed decision, the probability traders are assigning to a rate hike rose to 78 percent from 68 percent on Tuesday, according to data compiled by Bloomberg.