Equities steadied on Thursday following Wednesday?s FOMC-induced plunge. The action was bolstered by better than expected ISM data but may not be an end to the selling. The Fed?s new stance on inflation is hawkish and points to an aggressive round of rate hikes that has the yield on the ten-year treasury spiking. The yield jumped again on Thursday and threatens to break the bond market out to a new high. If the TNX moves up to set a new high above 1.750% it will open the door to a move up to 3.0% or higher.

Today?s action will be driven by the NFP however. The NFP is expected to be strong after the robust ADP report on Wednesday. A strong report coupled with lower unemployment and accelerating wage growth would seal the deal on interest rates and virtually guarantee a hike within the next 2 to 3 FOMC meetings.