Equity markets tried to move higher after the FOMC meeting, but the takeaways for investors are not bullish. The FOMC raised rates by 25 basis points as expected but left the door open to another hike later this year. The Fed also indicated it thought inflation would remain higher for longer and needed to leave interest rates higher to combat it. The market responded by pushing its expectation for the 1st interest rate cut to September and selling stocks.

The S&P 500 continues to show resistance at the 4,150 level and is unlikely to move above it. This will keep the index range bound in 2023, and there is a chance it will move lower. The increase in interest rates puts more pressure on an already cracking banking system and is sure to cause another failure, and the odds of recession continue to rise.