As to 'yields', well the Fed injected a lot of liquidity despite S&P rebounding in recent weeks; and we're back at the 4% level. Or very close. Most companies don't care too much about round-number interest rates; so the question might come down to whether we really are 'done' with the Banking sector issues.

Certainly higher rates are a challenge for the stock market. So that's troubling for the only way to really hold the S&P together; and that's a 'broadening out'. It also makes it challenging for the smaller-caps (thinking Russell); and well it is all something I was already contemplating but for later this Summer.

Mostly the idea was extend last month's move into early-mid July and see. Of course in this case China has become an interloper of the pattern; call it 'the Bear in the China Shoppe', not a Bull wrecking at this point. It's fluid and likely will be unclear at least for a couple of days.

In-sum: 

Inflation is with us; and many commodities spiked (grains and beans fell off their highs too) and rest. Nevertheless the Fed cannot be oblivious to a backdrop with 'el Nino', intense heat and storms; and likely poor crops.

That's inflationary, but not very related to monetary policy influences such as the Fed sort of notes. So 'hawkish' pause attitude is weird as rationality says they should be 'done' and maybe they are.

Factory Orders and ISM reinforce a view that the Fed should be concerned about not doing more harm than good, and that includes fighting inflation (as they won't impact food or Energy very much at all).

Face-slapping with China (alternating) and capital flows matter. Economics, if they win, will calm this down in order to avert an embarrassing scenario this week, similar to Sec'y. Biden's 4-day trip that became a two-day visit. Can we 'hope' Sec'y. Yellen is up to the task of what is a crucial time with Beijing; if not the most critical since Kissinger/Nixon opened China to foreign capital inflows.

Equities are complicated here (is that bearish?). No real dovishness in FOMC Minutes; but I didn't expect that; and another hike would be one too many (at the same time the last, which should already have been the case).

People are struggling; higher costs of capital (business or household) and it's the Fed's responsibility to recognize when they become counter-productive. It bothers me because they were so late to cut; then way too late to firm again; and now I wonder if their desire to shrink the Balance Sheet is excessive. So if the shrinkage is notable (I think Friday) we'll see QT sort of settle-out even if it means a 'recession' (double dip we say); but again many variables, though we know the Fed wants to get inflation down at least another percent or so.

Meanwhile...indirectly a contract signed by Wolfspeed and customer benefits AEHR Test Systems, which did give back most of Monday's unusual vertical final hour share-price gains, before stabilizing a bit. WOLF soared on that.

Not small either: Renesas Electronics signed a 10 year silicon carbide wafer supply agreement with Wolfspeed. The agreement includes a $2B deposit to Wolfspeed to secure supply agreements for both 150mm and 200mm silicon carbide wafers and supports Wolfspeed's US capacity expansion plans that I presume are both for North Carolina and the new Mohawk Valley NY plants.

Bottom-line: 

Actually disappointing session; not because S&P didn't rebound after the FOMC Minutes (it eventually did struggle back before a late fade). Of course frustrated because it's impossible to clarify the stories relating to China restrictions or limitations as a real concern for big Semi's or perhaps not. Ask Janet Yellen to focus on that in China this week please.

Too much optimism has been in less than a dozen big-cap stocks; and that's a danger. It's also why we need (but may not get) the broadening-out here; and that is even more worrisome for money managers trying to offset a miserable first half, because they were too bearish for too long; get grilled about that, as well as miss those cushy performance bonuses perks (that high-cost living in major cities require). So yes there are many anxiety-driven perplexed folks in the markets; including major hedge and fund managers. Mostly they hoping a broadening-out lifts lower-cap stocks since that's where value is. We'll see.

As to 'Instagram' and META 'Threads'; that launches this evening; and I'll for sure check it out. Twitter's not at all 'dead' as one pundit suggests; opposite possibly; as new management just getting a grip and clearing out those bots that messed things up. Elon has actually fired lots of people, introduced new features, and helped clear-out fake accounts and such.