Praveen Paramasivam and Bansari Mayur Kadar

(Reuters) – Wall Street’s top indexes tumbled on Tuesday, after Lael brainard, U.S. Federal Reserve Governor, stated that she expected rapid reductions in central bank balance sheets. The announcement rattled investors already anxious about possible new Russian sanctions.

Technology-focused Nasdaq saw its stock price fall the most, as investors were less inclined to buy high-growth stocks due to increased expectations about faster interest rates. Nvidia, Apple (NASDAQ;) and Amazon (NASDAQ 🙂 all fell between 1.1% and 3.7%.

According to Sam Stovall (chief investment strategist, CFRA Research, New York), “What’s causing market panic is the expression ‘at an alarming pace’. This implies they won’t only let bonds mature but will also sell bonds to achieve a neutral policy at the end of this year.”

“That is what is causing investors concern – the Fed’s speedy and aggressive reductions in its balance sheet.”

Investors are now seeing a nearly 81% chance of a rate increase by the Fed at 50 basis points. [IRPR]

Brainard indicated that her view of methodical rate rises is positive and she believes the Fed will rapidly ramp up its reductions to the nearly $9 trillion in balance sheets to increase runoff at a “considerably faster” pace than last time.

Wall Street was opened at a lower level as Russia prepared new sanctions against Moscow.

10.35 AM ET ET. The index was down by 61.63 Points, or0.18%, to 34,860.25, and was down by 24.44 Points, or0.53% at 4,558.20. It was also down 197.02Points, or1.36% at 14,335.53.

Data from the Institute for Supply Management indicated that U.S. service industry activity increased in March due to the lifting of pandemic restrictions. However, businesses continue to experience higher prices as supply pressures persist.

Micro-blogging site Twitter Inc (NYSE:) gained 3.8% after adding 27% to its previous session surge. After naming Elon Musk CEO of Tesla Inc (NASDAQ:) Inc, the company also announced that top shareholder Tesla (NASDAQ.) Inc) was being named to its board.

Carnival Corp (NYSE:) rose 5.3% following the announcement by cruise operator Norwegian Cruise Line (NYSE;) Holdings Ltd of its largest booking week ever. Royal Caribbean Cruises Ltd. 2.5% and 1.3% respectively.

The ratios of decliners to advancers were 2.71-1 on the NYSE and 2.35-1 on the Nasdaq.

The S&P index recorded 36 new 52-week highs and five new lows, while the Nasdaq recorded 37 new highs and 38 new lows.