Is the calm period of US stocks coming to an end? Morgan Stanley's trading department predicts that the S&P 500 index will experience significant volatility due to CPI fluctuations

JPMorgan Chase's trading department reminds investors to be prepared for the sharp volatility in the US stock market this week after a long period of calm. Andrew Tyler, head of market information for the bank's trading department in the US, said that the price of at-the-money straddle options expiring that day indicates that the options market is currently betting on a 0.9% up and down swing in the S&P 500 index before Thursday. The US will release the latest consumer price index before that, and traders are betting that a slowdown in inflation could trigger unusual market volatility, leading to the Fed cutting interest rates twice this year. "Several former Fed officials believe that September is the right time to cut interest rates," Tyler and his team wrote to clients in a research report on Tuesday, "Taking this into consideration, we remain tactically bullish, but with slightly reduced confidence."