Patti Domm is CNBC executive news editor, responsible for news coverage of the markets and economy. Prior to joining CNBC in 1999 as senior news editor, Domm was the equities editor for the Americas at Reuters. She was also Wall Street editor at Reuters, reporting on mergers, acquisitions and the Street. She also edited three CNBC books on personal investing. Domm serves on the board of the Financial Womens Association of New York.
Stocks successfully tested their summer lows Thursday, but they are likely to take another run at them, as investors remain fearful of recession and European banking crisis.
With no solution in sight for Europe and new fears of a global recession, investors dumped stocks and commodities and ran to the safety of U.S. Treasurys.
Moody's downgrade of three major banks on the premise the U.S. government will not stand behind them if they fail is "absurd," said Rochdale Securities analyst Dick Bove.
The Fed's gloomy words on the economy left the market with a sinking feeling that's likely to spill into Thursday. "The Fed sounded nervous," one strategist said.
Markets are expecting the Fed to unveil a modern day "Operation Twist," similar to a Federal Reserve program in the early 1960s. Fed watchers speculate on various degrees of easing, but they basically agree the Fed is about to unveil a program to buy longer dated Treasury securities in a bid to hold down interest rates.
The Fed in the week ahead is widely expected to pull the trigger on a new easing program, as the European debt crisis continues to boil.
A meeting of European finance officials to discuss the sovereign crisis, paired with the quadruple witching expiration of futures and options guarantees more stock market volatility Friday.
The Fed begins its two-day meeting Tuesday amid a barrage of earnings news and economic reports.
Check out the companies making headlines after the bell on Monday.
No matter who wins the election, the big banks could be on the chopping block.
Shares of Micron jumped 6 percent on Monday after the company filed a new shareholder rights plan.
Patti Domm is CNBC Executive Editor, News, responsible for news coverage of the markets and economy.
A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.
Senior Producer - Breaking News
Dominic Chu is a markets reporter for CNBC.
Evelyn Cheng is a markets writer for CNBC.
Sara Eisen is a correspondent for CNBC, focusing on currencies and the global consumer.