Equities rebounded from Monday's low on Tuesday but investors shouldn't read too much into the news. The FOMC is slated to raise interest rates today and could be more aggressive than the market expects. Even if today's rate hike is only as expected at 50 basis points the outlook for the pace of future hikes is a risk for the market. As it is now, the market is pricing in as many as 6 interest rate hikes by July and that could be 1 or more too few. Based on history, the FOMC will have to quash economic growth to get inflation under control, the question is if they will provide a hard or a soft landing and we are leaning toward the hard landing scenario.

As if the FOMC isn't enough to keep the market occupied, the NFP is due out on Friday and could shock the market as well. There are already some signs that inflation is curbing activity, if signs of slowing show up in the labor data fears of a full-blown recession will increase and the market may move lower because of it.