Wall Street Desks Warn CPI Report May Upset Stock-Market Calm

From JPMorgan Chase & Co. to Citigroup Inc., Wall Street’s most prominent trading desks are warning that investors should gear up for a potential break in the calm that’s come over the market.

The options market is betting that the S&P 500 Index will move 1% in either direction after Wednesday’s report on consumer prices, based on the price of that day’s at-the-money straddles, according to Andrew Tyler, head of US market Intelligence at JPMorgan Chase’s trading desk. For Stuart Kaiser, Citigroup’s head of US equity trading strategy, the broader market is bracing for a move around CPI ...