Stocks are bouncing but market will soon face next big hurdle

Stocks bounced back Tuesday, but volatility could remain high until investors become more confident about the future of the banking sector. Strategists see the Federal Reserve's policy meeting next Tuesday and Wednesday as the next big hurdle for markets, barring any other unexpected developments. Traders in the futures market upped their bets Tuesday to a more than 70% chance that the Fed raises interest rates by a quarter point on March 22.

" The central bank will also release forecasts after that meeting, including new outlooks for interest rates and inflation. "Something pretty darn significant just broke as a result of higher rates," said Lori Calvasina, head U.S. equity strategist at RBC. "I think 50 [basis points] would get a negative reaction. I think the market would be fine with a pause and probably handle a 25 in stride, but it all comes down to the press conference and the details.

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