Stocks ended lower again yesterday, and are on pace for another down week.

Wednesday's 75 basis point rate hike, coupled with a higher expected terminal rate (4.6% by early next year vs. 4.0%), and an accelerated timeline to get there, weighed on stocks for the second day.

By year's end, the Fed expects to be at 4.4%. In order to reach that level in the next 3 months, it will require another 1.25% between the next two Fed meetings in November and December. Absent an intra-meeting rate hike, that would mean another 75 bps at one of the meetings, and 50 bps at the other.

The next meeting on November 1-2 is 5 weeks away.

But we will get another look at inflation with the CPI and PPI reports before then.

While the Fed did say they will continue to look at the data, and take each meeting as it comes, they seemed resolute in their short-term hiking plans. And unless inflation suddenly plummets to 2% next month (don't bet on it), it's hard to imagine any scenario that would slow the Fed down at this stage. Presently, the midpoint for the Fed Funds rate is 3.13%. So there's still a long way to go to get to 4.4% and 4.6%.

In other news, yesterday's Weekly Jobless Claims rose less than expected with 5,000 new claims at 213K vs. the consensus for 220K.

And the Leading Indicators report slipped -0.3% m/m vs. views for 0.0% and last month's dip of -0.5%.

Today we'll get the PMI Composite Flash report.

And we'll hear from Fed Chair, Jerome Powell, as he will provide the opening remarks at the 'Fed Listens' event, which will cover the topic 'Transitioning to the Post-Pandemic Economy.' We'll also hear from Fed Vice Chair, Lael Brainard, and Fed Board Governor, Michelle Bowman, as they will be moderating this afternoon's event.

While no new news regarding the recent interest rate hike is expected to be made at the event, there's still likely to be a keen interest in what these members have to say, not to mention the various businesses, organizations, and nonprofits who will be participating in the event. And most everybody is curious what these leaders have to say regarding the post-pandemic economy.

It will be nice to put an end to this week.

While it's pretty certain the markets will finish down for the week, let's see if they're able to muster a little green for the day.

Best,