Selling on Wall Street gained new intensity last week after the PCE price index proved the FOMC was out of time. The market, hopeful that year-over-year comps in consumer inflation would tame, was disappointed with another acceleration of the same. The news sent the S&P 500 down to the lowest levels in weeks and leaves it in danger of breaking through key support this week.

This week there are several market-moving catalysts to be aware of including the non-farm payrolls report on Friday and the FOMC policy announcement on Wednesday. The FOMC announcement will be the biggest news of the week, however, and may shock the market despite months of foreshadowing by FOMC members. The market is pricing in a 100% chance for a 50 basis point rate increase and the committee could go as high as 75. Regardless, the FOMC is expected to raise rates incrementally at each of the meetings this year and some meetings will bring more than 25 basis points.