NEW YORK (TheStreet) -- Investors were bracing for a big move in equities after the Federal Open Market Committee's policy statement later this week, creating skittishness in the stock market early afternoon Monday.
The Dow Jones Industrial Average
Watch the video below for a closer look at how U.S. markets are doing in midday trading Monday:
The SPX has been consolidating around 2,000 for the past 14 sessions awaiting the announcement from the Federal Reserve's policy-making arm. But Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research, said that the jitters may be overblown. Even if the outcome of the meeting could open the door for potential interest rate increases to occur sooner rather than later, that isn't necessarily bearish for the market, he said.
"Historically, Fed tightening has caused temporary corrections in the form of pullbacks greater than -10%, but it has not caused an immediate end to bull markets," Frederick explained.
Wednesday's policy announcement from the Fed could indicate that an interest rate hike will take place in the near future. With the economy continuing to perform well, there is a general expectation that the FOMC might drop the "considerable time" for low interest rates phrase from its statement to prepare the markets for a move toward policy normalization next year.