(CBS) — Stocks closed sharply lower Thursday after hawkish comments from New York Fed President William Dudley put the prospect of a June interest rate hike squarely on the table.

The S&P 500 shed 7, the NASDAQ lost 26 and the Dow Jones industrial average closed down over 91 points, settling to 17,435.

“We heard comments yesterday from a few Fed officials that the June meeting is a live meeting and the possibility exists that interest rates are going to go up in June,” says Paul Nolte, portfolio manager at Kingsview Asset Management.

“I think the market coming into this week was pretty much of the opinion that rates would not be going up anytime soon, if at all this year, and now have to walk back from that.”