US stocks have gone from euphoria to the brink of a correction in a matter of weeks. Now, US inflation data due Wednesday are poised to give the S&P 500 another jolt of volatility, as options traders see it.
Options traders anticipate increased S&P 500 volatility following the upcoming US CPI data release, with potential swings exceeding the average seen in the past year. The CPI report is crucial for setting expectations for the Federal Reserve's future actions, and any deviation from expected inflation trends could trigger significant market turbulence in either direction. JPMorgan Chase & Co. has downgraded its view on expectations of more negative data prints ahead. Several scenarios are laid out, indicating potential S&P 500 movements based on the CPI figures.
