But stocks have still made significant gains this year. All three major U.S. indexes are up by between 11% and 13% since January.
The Fed has been a major driver of the bull market over the past few months as it has injected liquidity into the markets. Traders say the coming shift in monetary policy will make for volatile markets in the months ahead.
The CBOE Market Volatility Index(VIX) surged 23% Thursday.