Investors on Edge Ahead of Tuesday Inflation Data That Could Spark Market Swings

• Traders bracing for potential 1% swing in S&P 500 ETF shares after Tuesday's inflation data release • Options activity signals nerves ahead of influential data that could shape Fed policy • Strong recent economic data has weakened expectations for Fed rate cuts this year • January inflation reading sparked a stock selloff, so nerves are heightened ahead of Tuesday's report • VIX ticked higher Monday, indicating elevated investor caution entering the inflation data