I actually don't believe the Fed had anything to do with it. They have been saying for months that there would be a quarter point increase in November and one more in December, then three more next year. I think it was already priced in, it always is.
The only thing new was that the Dems took over the house. And, after they did, the only thing they have talked about since are things that will hurt the government, businesses, wages, and jobs in the future. That is what is being priced in. I think the main market movers thought everything was just talk during the campaign, but when they started talking worse after, they all panicked.
It really is the only change. Jobs, wages, and sales are all still outstandingly better than when the Dems last held the house. Now they are talking about going back to those days of yore.