We enter the week with equities rebounding after a slow burn of selling throughout last week. Big tech is leading the gains as the dollar falls. Over the last 6 weeks, the S&P 500 has been down 4 of them. Still, the index is up double digits on the year.

Newton scores are weakening given the selling pressure from last week. Large caps hold a slight advantage over their smaller capitalization counterparts. Across the pond, foreign markets are weaker. As interest rates climbed higher, bonds also deteriorated. Energy is still the strongest sector according to Newton while interest rate-sensitive sectors like Real Estate and Utilities are at the bottom.

On the economic front: This week we get an important report on inflation. The CPI read is expected to come in at 0.5% month over month, compared to the prior 0.2%. For YoY, the consensus is 3.5% vs. the prior 3.2%. The expected rise can, in part, be attributed to rising gasoline prices. If we get a hotter-than-expected number, the odds of another Fed hike by year-end will likely go up. The main thing for investors to monitor will be the trend in core inflation and inflation expectations.

A quick note on the Fed: We are entering the blackout period ahead of next week's meeting. All signals point to the Fed holding rates steady as the odds of a hike stand at only 7%.