*WALL ST SINKS AFTER WEAK DATA, HAWKISH FED COMMENTS -
Wednesday's decline was Nasdaq's first loss in eight sessions while the S&P and the down both saw their biggest daily percentage declines since Dec. 15.
"The market was overbought. Today's economic data served as a trigger to initiate a profit taking spell and the groups with most profits to take have been the ones that have done best last year," said Stovall. Earlier in the day, St. Louis Fed President James Bullard and Cleveland Fed President Loretta Mester stressed on the need to raise rates beyond 5% to bring inflation to heel.
The Fed commentary also highlighted the disparity between the U.S. central bank's estimate of its terminal rate and market expectations, which were of the rate peaking at 4.88% by June. Traders are now betting on a 25-basis point rate hike in February.
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