Dow Dips on Fed Leaks

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Wall Street analysts have been saying all along that with stocks so high, it would only take signs of a rate hike by the Fed to cause a tumble. And here we are.

By around 1 p.m., Nasdaq was down 2.7 percent to 1817, and the Dow was off 1.7 percent to 8909, in a sell-off sparked by leaks from the Fed that it may have shifted its bias towards raising interest rates. "This is just a bit of nerves, some people saying the market is a little high and taking something back," says Jeffrey Warantz, a senior analyst with Salomon Smith Barney."

Market analysts say that Monday's sell-off, coming on the heels of two days of declines last week, is probably not a turning point in the bull market. "I don't see any major concerns," says Warantz. "If anything, by tomorrow you will see buying on the dip."