The indices were hanging on to slight gains in anticipation of this morning Consumer Sentiment reading. Traders were expecting to see a reading of about 72. The actual reading was way off, coming in at 66.8. That is the worst reading we’ve seen in a decade. This follows Wednesday’s Consumer Price Index reading which showed inflation had hit a 31-year high. At some point or another, higher prices were going to lead to a more reserved consumer. It appears we’ve arrived at that point.

The rest of the month’s news slate is relatively light. Traders will be most interested in GDP on the 24^th, and PMI on the 30^th. The next two-day FOMC meeting takes place on December 14^th and 15^th. Fed funds are now suggesting we’ll see a rate hike by the Fed’s June meeting, and the odds of a second (and even a third) hike in 2022 have also increased dramatically.