Equities pulled back for another day on Wall Street as fear of recession in 2023 grips the market once again. While nothing has changed fundamentally, the number of CEOs calling or preparing for a recession is growing. The risk for investors now is that economic contraction won't happen and the S&P 500 will continue to rally well into next year.

The next hurdles for the market are at hand. Friday will bring the PPI index and next week is the December FOMC meeting. The PPI is not expected to show much change versus the previous month which is bad news, high and steadily rising producer prices can only mean higher prices for consumers down the road. As for the FOMC, the committee is expected to raise rates by 50 basis points at the next meeting but the tone of the statement could change. The latest news from that direction is that interest rates move higher than currently expected and remain that way for longer.