The market got a little optimistic and ahead of itself anticipating the end of rate hikes. The market will churn sideways for the immediate future.
The fact that long-term rates didn't rise in some sense offset some of the impacts of the higher costs of energy. They fought to a draw, and as a result the markets weren't affected by either interest rates or energy.
You might have a situation where the Fed raises rates, modifies the language a little bit but intends to keep on going. If the market assumes that it's one more and done that might be a misread.
The labor market is important to the Fed under any circumstances. Once you get rising wage pressure that's when inflation gets intractable.
Higher oil prices, concerns about rising interest rates here and in Europe, and weak economic data are all pushing the markets down today. The scenario is not clear enough for investors to support sustained gains in stocks.
The market is going to sort of tread water until we hear the results of the (Fed) meeting and what the Fed has to say about their decision. That's the 500-pound gorilla of events next week.