Wall Street anticipates a surge in U.S. Consumer Price Index (CPI) data this Thursday, signaling higher inflation levels. However, with employment data dominating market narratives, substantial stock market fluctuations are not expected. According to Citigroup’s Stuart Kaiser, options traders predict a moderate 0.7% movement in the S&P 500 index following CPI release. This estimate is significantly lower than the historical average of 0.9% observed on past CPI days and also below anticipated volatility for the upcoming employment report scheduled for October 3rd. Kaiser further suggests that even this implied volatility might be inflated. This situation is intricately linked to how traders interpret the Federal Reserve’s interest rate trajectory. Recent signs of economic weakness in U.S. employment data have prompted market expectations for a 25 basis point decrease in the federal funds rate by the Fed at its meeting on September 17th. Additional rate cuts are also expected during meetings scheduled for October and December.