Analyst: September rate cut is almost certain, options traders expect stable stock market performance

According to ChainCatcher, citing Jinse Finance, with a Federal Reserve rate cut in September almost a foregone conclusion, options traders generally expect the stock market to remain stable ahead of Thursday's CPI data release. The market's expectation for a rate cut is based on stagnant US employment growth and the need to stimulate the economy. Weak employment data released on Friday further reinforced expectations for a 25 basis point rate cut.

Although US stocks fell slightly and the fear index rose marginally, it still remained below the key level of 20. Options traders expect the S&P 500 Index to experience about a 0.7% two-way swing after Thursday's CPI release.