Equity markets went on a wild ride on Wednesday moving both upwards and downwards multiple times during the session driven by expectations for and then actions from the FOMC. The FOMC raised interest rates by the expected 75 basis points but gave some commentary that is more hawkish than expected. The Fed's chief Jerome Powell says the committee will hike rates by at least another 160 basis points before they are through and the takeaway is that rates could move even higher if inflation is not tamed. The S&P 500 closed down more than 1.50% on the news and appears to be headed for the June lows.

The fear for the market now is earnings focused. With inflation still out of control and FOMC on track to cause a major recession the expectation for earnings growth is in decline. At the pace estimates are falling, the Q4 reporting period could very well see earnings decline rather than grow. In that scenario, a move to the June lows may be the least the market should expect from the S&P 500.