Options traders expect the S&P 500 to fluctuate by 0.7% after CPI data is released

As the Fed cut rate in September is almost a foregone conclusion, options traders expect stocks to run smoothly before Thursday’s CPI data, according to BlockBeats. But if the data shows inflation is heating up, this bet may hide risks. The logic behind market expectations of interest rate cuts is that U.S. employment growth has stagnated and the economy needs stimulus. Weak employment data prompted investors to fully digest the Fed's 25 basis points cut rate. U.S. stocks fell slightly on Friday, with the panic index rising slightly. Options traders bet that the S&P 500 will see a two-way fluctuation of about 0.7% after the announcement of the CPI on Thursday, down from the average actual volatility of 1% over the past year. Any positive or negative data could change the market outlook.