Bulled-Up US Equity Traders Look Past Threat of a Hot CPI Report
Stocks traders appear to be shrugging off the possibility of a hotter-than-expected inflation print on Tuesday, leaving them vulnerable if President Donald Trump's trade war leaves its mark on US consumer prices.
Bets in options markets show traders expect the S&P 500 Index to swing 0.6% in either direction following the 8:30 a.m. New York time release of June consumer price figures, according to data compiled by Citigroup Inc. That's broadly in line with how much markets have moved during the last two CPI releases, when consumer prices rose less than expected. However, it's well below the average realized move of roughly 0.9% over the past year on those days.
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