Markets Right Now: Fed outlook on rates weighs on stocks

Some high-dividend stocks fell for a second day Thursday as investors braced themselves for the likelihood of an interest rate increase in June at the Federal Reserve's next policy meeting.

High-dividend stocks fell for another day Thursday as investors braced themselves for the increased likelihood of an interest rate increase in June at the Federal Reserve's next policy meeting.

European stock markets are trading lower after the Federal Reserve suggested that an interest rate increase was possible next month if the U.S. economic data continues to be strong.

A big impact was felt in the currency markets, where the dollar firmed as traders priced in a growing likelihood of a rate hike in June.

Neil MacKinnon, global macro strategist at VTB Capital, says the danger for the Fed "is that 'flip-flops' in its message to the markets just ends up denting the Fed's credibility and contributes to unnecessary market volatility."