How to trade this week’s CPI report, according to JPMorgan

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How to trade this week’s CPI report, according to JPMorgan
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This week's main market event comes Thursday with the release of the June consumer price index report.

This week's main market event comes on Thursday with the release of the June consumer price index report — which could shed light on when the Federal Reserve will cut interest rates. Economists polled by Dow Jones expect CPI to have risen 0.1% month over month in June and 3.1% year over year. Core CPI, which excludes volatile food and energy prices, is forecast to have expanded by 0.2% month over month and 3.4% year over year.

25% rounded to 0.3% could be initially negative but a 0.2% print on the screen is likely viewed positively," JPMorgan traders wrote. The S & P 500 would increase 0.25%-0.75% under this outcome. 15% chance — CPI rises 0.25%-0.3%: The S & P 500 would drop 0.75%-1.25% under this scenario, as such a report could show shelter prices increasing. 15% chance — CPI gains by 0.1%-0.

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