10 things you need to know before the opening bell

Here is what you need to know.

The Fed sees 3 rate hikes in 2017. The Fed hiked its key interest rate 25 basis points to a range of 0.50% to 0.75% at Wednesday's meeting and upgraded its forecast to three rate hikes in 2017 versus its prior forecast of two.

Bond markets everywhere are getting crushed. Post-Fed selling has run the US 10-year yield up about 20 bps to 2.62%, its highest since June 2014. Meanwhile, selling in Europe is having the biggest impact on the UK 10-year, which trades up 14 bps at 1.52%.

The US dollar is surging. The greenback trades higher by 0.9% against a basket of its peers as traders continue to pile in following Wednesday's rate hike. Of the majors, the dollar's gains are strongest against the Japanese yen, which trades down 1.2% at 118.39 per dollar, its weakest since February.

Stock markets around the world trade mixed. Hong Kong's Hang Seng (-1.8%) lagged overnight and France's CAC (+0.9%) leads in Europe. The S&P 500 is on track to open higher by 0.1% near 2,256.

Markets are betting the next Fed rate hike could happen by mid-2017. World Interest Rate Probability data provided by Bloomberg shows a 16.6% chance the Fed hikes 25 bps at its February meeting and a 50.2% probability a 25 bp hike happens by May.

The Bank of England meets. The central bank is expected to hold its key interest rate at 0.25%, but traders will be looking for clues as to whether or not the BOE's next move could be to tighten policy as head Mark Carney recently spoke about both an improving inflation picture and economy. The British pound is weaker by 0.6% at 1.2486.

Europe's PMIs were mixed. The Flash Eurozone PMI Composite Output Index held at 53.9 in December as manufacturing gained while the service sector slowed. German manufacturing led the way, posting a flash reading of 55.5, its strongest since January 2014. The euro is down 1.1% at 1.0417 versus dollar and at its lowest level since January 2003.

Yahoo revealed another huge hack. In what may be the biggest hack ever, the company says more than 1 billion accounts may have had phone numbers, birth dates, and security questions stolen by hackers during an attack that took place in August 2013.

Earnings reports trickle out. Adobe Systems and Oracle will release their quarterly results after markets close.

US economic data is heavy. Empire Manufacturing, initial jobless claims, and Philly Fed will all be released at 8:30 a.m. ET before Markit US Manufacturing PMI crosses the wires at 9:45 a.m. ET.