Hotter CPI Unlikely to Deter Rate Cuts, S&P 500 Rally — For Now

Equities traders are likely to shrug off any evidence of stubborn inflation in Friday’s consumer price index report, as the market narrative is dominated by optimism for an expected Federal Reserve interest-rate cut next week. Such is the view of JPMorgan Chase & Co.’s trading desk, which sees a roughly 65% chance the S&P 500 Index will advance following the release despite economists expecting an elevated print. The team including Andrew Tyler laid out scenarios for stocks on CPI day that are “less volat ...