U.S. stock-index futures slumped and the dollar strengthened as nervousness about U.S. interest-rate hikes spread through global markets.

S&P 500 contracts lost 0.3%, while Europe’s Stoxx 600 Index fell for the first time in 10 days. Emerging markets and commodities were lower, while bank shares advanced. The Bloomberg Dollar Spot Index rose for a fifth day. Miners Freeport-McMoran Inc. and Newmont Corp. declined in premarket New York trading.

Fed Chair Jerome Powell acknowledged the risks of inflation and said officials had begun a discussion about scaling back bond purchases. Policy makers’ dot plot showed they anticipate two rate increases by the end of 2023, a faster-than-expected pace of tightening. This marked a turning point in the Fed’s communication to global markets, which had so far been ultra-dovish.

“We’ve gotten to a point that has everyone feeling slightly less comfortable in assuming that the Fed is going to be able to be as patient for as long as they would like,” Michelle Girard, Natwest Markets co-head of global economics and chief U.S. economist, said on Bloomberg Television.

U.S. Stocks, Bonds Are Moving Together Like It’s the ‘90s: Chart

While Powell downplayed the risk of any immediate rate increase, some investors interpreted his comments as preparing markets for a hawkish tilt and an eventual tapering. His remarks followed the Fed’s latest projections, which included upward revisions to its outlook for inflation and interest rates.

In equities, CureVac NV plunged 47% in German trading after a study found that its Covid-19 vaccine fell short of targets. The findings, though preliminary, throw the future of the vaccine into question as wealthy nations around the world move swiftly to inoculate their populations with shots already available.

Copper fell 2.6% in London to the lowest in two months. The rally in metals has stalled in recent weeks and copper has retreated from last month’s record as concerns about cost pressures spurred expectations stimulus that had been supporting the global recovery would be scaled back. Copper producer Freeport-McMoran was 2% lower in premarket trading, while Newmont fell 2.9%.

Read more on the Fed and market reaction:
Fed Catch-Up to Market Pricing Has Street Standing Firm on Calls Treasuries Slump on Hawkish Fed Surprise as Inflation Angst Ebbs Fed Ripples Hit Hardest in Asia as Rates Outlook Suddenly Shifts Dollar Rebound Seen Short-Lived as Bearish Themes Stay Intact

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Here are some key events to watch this week:

• U.S. Treasury Secretary Janet Yellen testifies before a House panel Thursday on the federal budget
• Rate decisions come from Switzerland and Norway on Thursday
• The Bank of Japan’s monetary policy decision is on Friday

These are some of the main moves in markets:

Stocks

• Futures on the S&P 500 fell 0.3% as of 8:14 a.m. New York time
• Futures on the Nasdaq 100 fell 0.5%
• Futures on the Dow Jones Industrial Average fell 0.2%
• The Stoxx Europe 600 fell 0.3%
• The MSCI World index fell 0.5%

Currencies

• The Bloomberg Dollar Spot Index rose 0.5%
• The euro fell 0.5% to $1.1936
• The British pound fell 0.2% to $1.3956
• The Japanese yen was little changed at 110.66 per dollar

Bonds

• The yield on 10-year Treasuries was little changed at 1.57%
• Germany’s 10-year yield advanced nine basis points to -0.16%
• Britain’s 10-year yield advanced nine basis points to 0.82%

Commodities

• West Texas Intermediate crude fell 0.3% to $71.92 a barrel
• Gold futures fell 3.9% to $1,789.30 an ounce

— With assistance by Emily Barrett