Equities extended their rally on Tuesday with the S&P 500 gaining more than 1.25% at the high of the day and moving above the 4,500 level for the first time in over a month. The move is being met with growing pessimism, however, due to a rising expectation for S&P 500 earnings targets to be lowered. Not only is there an impact from Russian sanctions to worry about but rising oil prices and inflation are playing a role as well. While an economic acceleration is expected in the second half of the year it seems as if 2022's darkest days are still ahead.

Trading on Wednesday will be impacted by Fedspeak. Three FOMC members including chief Jerome Powell are slated to make remarks before a variety of organizations. While no policy talk is expected, the market is sure to hang on every word. After Powell's comments on Monday, the CME's FedWatch tool is now pricing in a 50 basis point hike at the next meeting as greater than 60% and that figure is likely to rise over the next month.