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Market comments from Joseph Trevisani, FXStreet senior analyst:

The Fed is not pursuing inflation, it is not seeking to damp an overheating economy. It is chasing a ‘normal’ rate environment and will continue to do so as long as economic growth holds up.  

The Fed has been raising rates for more than two years. In that time U.S. economic growth has accelerated from 1.5  percent in 2016 to 3.4  percent in the first half of this year. Will the gain of another 100 points in the Fed Funds to the historically modest level of 3.25 percent really be the tipping point that sends the economy into recession?  

Equities have some real concerns, rising interest rates, trade contention with China, and the natural worry over an aging bull market. But stocks also have enormous profits. The S&P  500 was up 59 percent from its January 2016 low at Wednesday’s open. Yesterday’s plunge was as much about repositioning  and profits as it was about tech fears on trade and the possibility of lower growth next year.