"Investors looked to be shrugging off those worries on Friday, as positive premarket trading tracked the upbeat lead of Asia and European markets. The recent hawkishness regarding the Fed seems rather fragile, given that investors falsely believe lower interest rates support higher equities," said Igy, in a note.
One factor in whether a June rate rise happens is how upcoming economic data turns out. Fed officials have emphasized such readings are crucial in their rate discussion. The U.K. referendum on EU membership on June 23, seen by some strategists as a variable in that discussion, could delay the increase until later this year. "With huge economic implications to the Brexit vote, high frequency traders and home gamers are praying for no action from the Fed next month," added Igy, in a note. The U.K.'s Brexit vote takes place about a week after the next Fed meeting. Most investors remain blind to deteriorating S&P 500 earnings and future prospects for market gains.