Stock futures declined Tuesday night after another chaotic session in the market.

Dow Jones Industrial Average futures fell 0.5% or 168 points. S&P 500 futures slid 0.7%, and Nasdaq 100 futures were off by 1.1%.

MicrosoftFollowing the publication of the latest quarter-end report by the company, shares fell more than 4% after-hours. showed moderating revenue growth for its Azure cloud business. Microsoft reported quarterly earnings and revenues that exceeded analyst expectations.

Dow closed the day with a loss of 66 points or 0.2%. The 30-stock average fell 0.2% and traded briefly up at 226.54 points. These moves occurred a day after Dow posted a modest gain from its 1,115-point deficit.

The S&P 500 and Nasdaq Composite also closed well off their session lows on Tuesday, but still lost 1.2% and 2.3%, respectively.

Anu Gaggar from Commonwealth Financial Network is a global investment strategist. She said that she believes this extreme volatility was a result of investors expecting tighter Federal Reserve money policy.

Gaggar explained that “the market is showing withdrawal symptoms” as it deals with the possible removal of Fed put. “It almost feels like the market is behaving a little incoherently, not knowing which way to go – go down because the Fed is tightening or go up because the Fed is finally acting to rein in inflation and is loading up on ammunitions while economic growth remains strong.”

Fed officials are expected to end a two day policy meeting on Wednesday. An announcement is scheduled for 2 p.m. ET. The central bank isn’t expected to announce any policy changes, but investors will look for clues on when — and by how much — the Fed will raise interest rates later this year. Investors will be looking for clues on what the Fed plans to do to continue to unwind its stimulative actions taken in 2020 in support of the economy’s initial onset.

Gaggar explained that between rate hikes, tapering the $9tn deficit sheet and monetary policy changes quickly could lead to a new monetary system.

In anticipation of tighter Fed monetary policies, Treasury yields rose sharply in the first quarter. The benchmark 10-year note yield was briefly above 1.9% last week. On Tuesday, the yield closed at 1.77% — that’s still more than 20 basis points above where it ended 2021.

Data-wise, International trade figures are due to be released Wednesday morning at 8:30 AM. ET. At 10:10 a.m., new data on home sales will be available. ET.

The corporate earnings season also continues Wednesday, with Dow member Boeing and AT&T reporting before the bell. After the close, Intel and Tesla are expected to release their quarterly results.

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