Do stocks care about what the Fed will do next week? Probably not so much
The markets are focused on many things, including tax reform, but do not seem to be particularly concerned about interest rates.
The correlation between daily changes in the level of inflation-adjusted interest rates (Treasury Inflation Protected Securities) and the S&P 500 has fallen sharply since the election. Stocks care about the credibility of the new administration, the shape of the forthcoming tax package, and a lot of other things–but the level of real yields doesn’t appear to be one of them.