NEW YORK, New York - U.S. and global stocks had a volatile day Wednesday as investors digested possible Fed rate hikes and Russia-Ukraine tensions.

"We're in a tightening regime," BlackRock's Rick Rieder told CNBC's "Squawk Box" Wednesday.

"Interest rates are going to trend higher. ... volatility is going to be higher."

Just on 2:00pm the FOMC issued a policy statement signaling an interest hike could come as early as March.

With that, the Dow Jones, already up more than 300 points increased its advance to above 500. The Nasdaq was also more than 400 points ahead.

However as the news sunk in, or profit-takers took charge, the major indices suddenly reversed course, and the gains evaporated.

At the close the Dow Jones was actually down 129.61 points or 0.38 percent at 34,168.01.

The Nasdaq ended a tumultuous session flat, notching up a 2.82 points or 0.02 percent gain to close at 13,542.12.

The Standard and Poor's 500 dipped 5.52 points or 0.15 percent to 4,349.93.

The U.S. dollar surged as Treasury yields blossomed

The euro was weaker in late afternoon trading in New York at around 1.1241. The British pound slipped to 1.3453. The Japanese yen slid to 114.49. The Swiss franc eased to 0.9240.

The Canadian dollar was sharply weaker at 1.2670. The Australian dollar dropped to 0.7097. The New Zealand dollar fell to 0.6644.

In overseas equity markets, the German Dax closed 2.22 percent higher. The Paris-based CAC 40 gained 2.11 percent.

The FTSE 100 in London finished 1.33 percent in front.

In Tokyo, the Nikkei 225 fell 99.28 points or 0.37 percent to 27,032.85.

In Hong Kong, after being flat for most of the day, the Hang Seng closed slightly higher, adding 46.29 points or 0.19 percent to 24,289.90.

China's Shanghai Composite gained 22.61 points or 0.66 percent to 3,455.67.