Equities tried to rebound in a volatile session on Thursday but the move was without much strength. The S&P 500 ended the day in the red if above the opening level and well off the lows of the day. The market is trying hard to build a base of support at the 4,200 level but it will likely be short-lived. The S&P 500 is about to experience a massive earnings-based re-evaluation that could take it down another 20% or more if conditions don't improve.

Among the driving factors for today's market is inflation. The CPI index came in well above expectation for February and points to not only mounting headwinds for the consumer but increasing pressure on corporate margins. The FOMC is expected to act to curb inflation at the March meeting but any move now carries as much risk for harming the economy as saving it. What this means for the market is still unclear but one thing is certain; the FOMC is going to hike interest rates in March and they may surprise the market with a bigger hike than is currently priced in.