These 2 catalysts may signal a market bottom and spark a bounce, says iCapital chief investment strategist

• Whether the market bottoms out and bounces back depends on Fed signals and de-escalation in Ukraine, says iCapital's chief investment strategist.
• If the Fed says it will be less hawkish and the crisis alleviates in Ukraine, the market could rally, Anastasia Amoroso told CNBC.

The stock market is seeing heighten risks this week as new sanctions squeeze Russia's economy and war rages on in Ukraine, but two catalysts could signal a bottom and spark a new rally, said Anastasia Amoroso, iCapital chief investment strategist.

They include de-escalation in Ukraine and any signs that the Federal Reserve won't be as hawkish about rate hikes, she told CNBC in an interview Monday.

For now, it's too early to call an "all clear," and investors shouldn't yet bank on a rally like last week's because, there are even more unresolved risks on the table than a few days ago, she added.

"I'm not yet saying we've seen the low for this market. I think we need to be cautious here," Amoroso said.

She pointed to potential unintended consequences of the sanctions, such as changes in commodity flows or if those commodity flows get "weaponized." Cyber-warfare retaliation from Russia is also possible, she warned.

But Ukrainian and Russian officials began talks in Belarus Monday, and Fed chief Jerome Powell begins two days on testimony on Capitol Hill on Wednesday.

"If we are to make some progress in Ukraine this week, and if we are to hear a message from Fed Chair Powell on Wednesday that maybe they are paring back some of the more hawkish interest rate increases, then that could be the two catalysts the market really needs to find a bottom here and bounce off of that," Amoroso said.

Others on Wall Street expect the Fed to take a softer approach to rate hikes this year. Last week, top economist Mohamed El-Erian said the Federal Reserve won't be able to tighten monetary policy as aggressively now that Russia has invaded Ukraine.

Previously, many analysts expected several Fed rate hikes in 2022, starting with an increase of 50 basis points next month.

"This takes 50 basis points completely off the table," El-Erian told CNBC Thursday. "It takes the 8, 9 hikes a lot of people were talking about for this year off the table, and thankfully so... I didn't think the US economy could accommodate and live with such slamming of the brakes of monetary policy."