Here's how the market may react to July's CPI report, according to JPMorgan

Stocks could be in for some notable swings on Wednesday after July's consumer price index reading.

Here's how the market may react to July's CPI report, according to JPMorgan

TL;DR

  • July's consumer price index (CPI) reading is expected to cause notable stock market swings.
  • Economists predict headline CPI rose 0.1% month-over-month, with core CPI up 0.2%.
  • The data could be crucial for the Federal Reserve's decision on interest rates at its September meeting.
  • JPMorgan's trading desk noted the market's focus on whether core inflation remains sticky or if disinflation is possible.
  • Potential S&P 500 reactions are outlined based on different core CPI month-over-month outcomes, ranging from declines to jumps.
  • The U.S. has reportedly avoided an inflation spike from the Middle East conflict.

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