Equity markets pulled back a second day on Wednesday after weaker-than-expected jobs data from ADP. ADP says job gains increased by a net 145,000, about half what the economists expected. The news raises the question of recession and what the Fed's interest rate policy is doing to the economy. A weak NFP report on Friday will cement fears into place and will weigh heavily on the market.

A key report for investors will be the Challenger, Gray & Christmas report on layoffs. The February data showed a surprising surge in layoffs that may have accelerated over the last month. As an indicator, labor data is often lagging behind the broader economy so a downturn in hiring and an uptick in layoffs may signal the US is already in a recession.