Market action was mixed on Wednesday and left the S&P 500 down almost a full percent at the end of the day. Reports from names like Kraft Heinz and Chipotle Mexican Grill beat their consensus estimates while those from big tech, Microsoft and Google among them, did not. The news has Wall Street on edge with not only the PCE pride index but the next FOMC decision only days away. The takeaway from the earnings reports is that economic conditions are having an impact on the consumer and businesses.

The analysts have been revising their expectations for inflation and are now expecting to see the PCE price index accelerate on a YOY basis. The new figure has core PCE rising to 5.2% YOY from the previous 4.9% and puts consumer-level inflation just shy of the hottest levels in decades. At this pace, the market should expect the FOMC to issue another 75 basis point interest rate hike and a hawkish statement, possibly more hawkish than what they've stated so far.