If yields continue to rise then interest rate sensitive sectors like utilities, telecommunications and real estate are likely to be pressured lower today.
US pending home sales (http://www.marketwatch.com/story/pending-home-sales-inch-higher-as-tight-inventory-stifles-housing-market-2018-01-31) rose 0.5% in December, the National Association of Realtors said Wednesday, marking the highest reading since March, even though the index stands just 0.5% higher than a year ago. Shares of Goldman Sachs and Bank of America, however, rose 1.6 percent and 0.25 percent, respectively. Health insurer UnitedHealth's 3.2 percent drop was the most on the Dow, while Express Scripts' 6.2 percent decline weighed the most on the Nasdaq and S&P.
Analysts blamed hefty losses in health care and technology stocks and declining crude oil prices, which caused energy stocks to fall. "Investors will be watching the tone of the statement that could give us an indication on the number of rate hikes this year", Hogan said.
The Dow Jones Industrial Average lost 362.59 points, or 1.37 percent, to 26,076.89.
Private businesses in the United States hired 234,000 workers in January, below 242,000 in December, but higher than the market expected.
"Investors are catching up to the fact that rates have risen", said Jonathan Mackay, investment strategist at Schroders.
The CBOE Volatility Index, a near-term gauge of investor anxiety, reached a high of 13.23 on Monday, its highest level since December 1.
But yields have gained more recently, as the U.S. has raised interest rates.
At 12:44 p.m. Eastern Time, the S&P 500 index was down 29 points, to 2,825.
The manufacturing index for January will also be out, which fell the previous month. The investors took a keen approach to the U.S dollar and paid close attention as it rose against other currencies.
Among earnings, Pfizer shares fell 3.3 percent.
A surge in Boeing led Wall Street out of a two-day slump on Wednesday, but US stocks pared gains in early afternoon trading as investors awaited the Federal Reserve's comments to gauge the future path of monetary policy.
The Russell 2000 is down 33.08 points, or 2.1 percent. Chipmaker Advanced Micro Devices added 74 cents, or 5.7 percent, to $13.61.
Harley-Davidson dropped 8.1 percent after the motorcycle maker forecast a drop in shipments this year.
The S&P 500 index showed 14 new 52-week highs and four new lows, while the Nasdaq recorded 35 new highs and 37 new lows. The Dow's two-day loss of 2% was its worst since September 2016.