The bond market is starting to get cold feet about the Fed.
So for traders, appearances by Fed Chair Janet Yellen both Wednesday and Thursday could be critical in setting market expectations about the course of Fed rate hikes. Also looming large is Friday's jobs report, the last big piece of data ahead of the Fed's Dec. 16 meeting, so Wednesday's November ADP payroll report will also be important to markets.
The shockingly weak November ISM manufacturing survey Tuesday showed a contraction in the manufacturing sector for the first time in three years. The reading was the latest piece of softish data that raises doubts about the Fed's plan to raise rates in December, if the economy is strong enough.