Equity markets started the week on solid footing as traders and investors brace for what could be a volatile period. The market expects 2 critical data points to point the direction for trading this fall. The first is labor data; the monthly data is due out and should confirm ongoing health within the employment arena, including rising wages. The 2nd is the PCE price index. The PCE price index is expected to advance 0.1% at the core level and reinforce the idea the FOMC will hike rates again this year.

The question investors want to have answered is how many more times rates will rise. The Fed has indicated the possibility of several more hikes; a hot PCE index could get the market to believe what the committee is saying. Until then, the market continues to shrug off the threat of FOMC policy, setting it up for a big decline. Investors looking to avoid the volatility but stay invested are urged to consider low-beta, high-yielding, blue chip stocks.