Equity markets plunged to start the week. The move was driven by fear of spreading contagion related to the collapse of Silicon Valley Bank and others in the financial industry. The S&P 500 managed to claw its way back into positive territory on an intraday basis, however, but it was also unable to close at the high of the day. The takeaway for investors and traders alike is the market hit a new low and can be expected to hit more new lows in the coming days.

Today's CPI report could stave off a deeper market correction if it shows inflating is cooling. The risk is that it will show inflation has accelerated as the PCE price index did, which will not be good for equities. In that scenario, the FOMC should be expected to continue hiking rates and put additional pressure on the economy. The question is how much more pressure the economy can take before it cracks in a way the government can't bail out.