Market Anticipates Lower Volatility Ahead Of US CPI Data Release

According to BlockBeats, the United States is set to release its latest Consumer Price Index (CPI) data this Wednesday, September 9. Options traders generally expect market volatility to be lower than previously anticipated for CPI release days. This shift in expectations is attributed to the ongoing decline in inflation towards the Federal Reserve's target, which has led to preparations for potential interest rate cuts by the Fed. Consequently, the CPI data has become less significant for the stock market. Instead, the focus has shifted to the weakening employment situation and whether the Federal Reserve can avoid a hard landing for the economy. Eric Diton, President and Managing Director of Wealth Alliance, highlighted that the critical issue for stock market investors is whether the Federal Reserve has delayed interest rate cuts for too long. He noted that the risk of recession is now higher than it was two months ago, making inflation a less pressing concern. The evolving economic landscape has prompted investors to reassess their strategies, with greater attention now being paid to employment trends and the broader economic outlook.