The Dow Jones industrial average fell 207 points, or 1.2 percent, to 16,462 as of 9:35 a.m. Eastern time Friday.
The Standard & Poor's 500 dropped 21 points, or 1.1 percent, to 1,968 and the Nasdaq composite declined 55 points, or 1.1 percent, to 4,838.
Financial stocks, which would benefit from higher interest rates, dropped the most in early trading.
Bonds prices rose, pushing down the yield on the 10-year benchmark Treasury note to 2.16 percent.
The price of oil fell sharply.