Midday market 12/05: Services data fuels rate fears, SPY defends level 400

Market opens Monday's trading session on a not-so-pleasant note as the aftermath of Friday's jobs report disappoints investors with the job market continuing to grow contrary to the Federal Reserve's policy goals. Then, this morning's services sector index report came in higher than expected, fueling fears of changes in interest rate policy at next week's FOMC, especially as the services activity index hits 64.7, the highest since December last year.

This pushes the probability of the FED returning to a 0.75% rate hike path at next week's meeting from 21.8% to 25.3% based on Fed Funds Rate futures.