Treasury yields reached multiyear highs, putting pressure on stocks as investors braced for a hawkish Federal Reserve that is anticipated to raise rates to levels not seen since before the 2008 financial crisis.

The S&P 500 fell more than 10% from its August 16 high, which was the high point of the rebound from its June lows, due to a decline in the stock market. All of its key groups were in the red, and 93% of its companies were down on Tuesday. US two-year rates were close to 4%. In light of reports that the Kremlin was working quickly to hold phoney elections on annexing the regions of Ukraine that its forces still control, investors also kept an eye on geopolitical developments.

Fed officials are about to quantify the suffering they have been announcing when they provide updated economic forecasts on Wednesday. They might predict that the price of lowering inflation will be a significant increase in rates and future unemployment. In addition, rate increases by 75 basis points are expected from officials, and some market watchers believe that a full point increase may also be on the table.