The FED isn't the sole reason for markets diving.

Remember that the markets are forward looking, while FED's interest rates are lagging indicators.

There are several reasons for the market dives. Although there is no need for any reason for rallies orretreats in the stock market.

Now, we all witness the massive bounce from mid June to mid August. The markets then dived back close to its critical support area.

In my opinion, it's the series of events & news that spooked the markets.

Namely: FED Interest Rate Hike, FedEx, CPI Report, Russia Ukraine War, China USA tensions & etc, 

However, when we take a closer look into history. We can see that everytime the FED raises interest rates, the probability of a positive return after 1 year is 100%.

To conclude, the upcoming CPI Report is a critical signal to peak inflation or inflation is still on the rise. I believe it's peaking based on commodities & consumer discretionary prices dropping.