Charting the Markets: A More Hawkish Fed Rattles Investors

December is back on the table. After a two-day meeting, the Federal Reserve signaled interest rates could still rise in 2015. Traders have been jolted by the more hawkish tone, pushing the odds of a hike this year to 48 percent from 32 percent a week ago, according to Fed fund futures. Asian stocks fell for a third day, the longest stretch of losses in two months. The MSCI Emerging Markets Index dropped for a fourth day, sinking as much as 1.3 percent. European stocks fell for the third day in four.

The jump in two-year Treasury yields on Wednesday suggests Goldman Sachs and BMO Capital Markets were right in saying bond investors were underestimating the possibility of a U.S. rate increase this year. The 8 basis-point move higher was the most since March. The Fed is betting further job gains will lead to higher inflation over time. Meanwhile, the U.S. central bank dropped a reference to global risks in its statement. The probability of a move in January has risen to 55 percent from 40 percent a week ago. March's likelihood has jumped to 71 percent from 56 percent last Thursday, according to Bloomberg data.