Traders on Edge Ahead of Critical Inflation Report That Could Upend Markets

• Traders bracing for potentially hotter-than-expected inflation data in upcoming CPI report on Tuesday • Stocks rallied last week on prospect of rate cuts, but an unexpectedly high inflation reading could undermine gains • Volatility has been increasing on CPI report days in 2023 as data shows sticky inflation • Traders looking for clues about health of economy and Fed's next moves on rates amid blackout period
• If inflation remains persistently high, it could call into question expectations for Fed rate cuts later this year