Equity markets advanced on Tuesday on optimism that earnings from tech giants like Microsoft, Apple, and Facebook would impress. Expectations have been driving these stocks higher, so it will take solid results to continue the trend. If the news is less than what the market is looking for, it could spark a correction for the S&P 500. The S&P 500 advanced about 0.50% at the session's high and set a new 1-year high.

The FOMC poses another risk for equities this week. The FOMC is expected to hike interest rates another 25 basis points and could issue a hawkish statement as well. The market wants an indication that the rate hike cycle is over and is unlikely to get 1. The odds are high that inflation will remain hot through the summer, leading to another 25 basis point hike in the fall. Regardless, the economy and market must adjust to the "new normal" and conditions are only getting tighter.