STORY: The S&P 500 and Dow on Thursday were on track for their biggest daily percentage drop since Sept. 13, as investors saw mixed economic data and a resolute Federal Reserve as having increased the chances of a recession.

Money market participants expect at least two 25 bps rate hikes next year and borrowing costs to peak at about 4.9% by midyear, before falling to around 4.4% by year-end.

Moraif recommended beefing up cash reserves for those planning for retirement, saying it pays to sit in a money market fund as the Fed continues to raise interest rates.