AUG · ISSUE 33 · August 13, 2026

EVENT · BINARY

The print that decides the session in five minutes

July CPI lands at 08:30 ET. The market arrives at a record with the VIX at 15.5: complacency right before a binary print.

S&P 500

7,753

at all-time high

VIX

15.5

complacency

CORE m/m

+0.22%

expected consensus

THE NUMBER

+0.22%

↑ consensus for monthly core inflation

The risk is asymmetric: oil rose nearly 20% in July and that pass-through to prices hasn't shown up yet. A hot print revives the rate-hike story; a cool one relieves the long end of the curve.

NUMBER

ZOOM IN

+0.22%

+0.22%

core m/m consensus · 2.5% year over year

It looks tiny, but the market stakes weeks of trend on the tenth that separates a cool print from a hot one.

A tenth of a point above or below 0.25% monthly completely changes the market's expected reaction.

m/m
Month-over-month change, the most recent pace of inflation.
YEAR OVER YEAR
Change versus the same month a year ago.

QUOTE

AUTHORITY

The market prices the surprise, not the print

Consensus is already priced. What the market trades in the first second is the surprise: how far the actual print lands from what everyone expected.
JPM · Market Strategy

Consensus is already in the price. What moves the session is the gap between the actual number and expectations.

PRICED IN
Already reflected in the price before the data is released.
SURPRISE
The gap between the actual print and the prior consensus.

TREND

8 MONTHS

Core inflation, pressed near the target

2.0%, FED TARGETJAN · 3.3%JAN · 3.3%TODAY · consensus 2.5%TODAY · consensus 2.5%
JAN '26MAR '26MAY '26JUL '26AUG '26

The trend is cooling, but July's oil pass-through is the wildcard that could break the line.

Eight months of core year-over-year. It's nearing the 2% target, but oil threatens the final stretch.

FED TARGET
The 2% inflation the Fed pursues over the medium term.
PASS-THROUGH
The feed of a cost (oil) into the final price you pay.

TWO PATHS

COOL vs HOT

What happens if the print surprises either way

COOL PRINT

Core below 0.20%

  • Relieves the long end: rates ease off.
  • Lowers the odds of a September rate hike.
  • Stocks breathe and the 7,700 support firms up.

HOT PRINT

Core at 0.25-0.30% or more

  • Revives the hike story and pushes the 30Y above 5%.
  • JPM scenario of an S&P 500 drop between 0.5% and 2.5%.
  • Losing 7,700 would open a technical gap down to 7,500.

The same report, two opposite movies depending on where the tenth lands.

LONG END
The longer-maturity bonds (10 and 30 year), sensitive to inflation.
SUPPORT
A price level where a decline tends to stall.

SCENARIOS

APPROX ODDS

The market's probability map

GOOD SURPRISE (<0.15%): 7%CENTRAL (0.20-0.25%): 53%BAD SURPRISE (0.25-0.30%): 33%VERY BAD (>0.30%): 7%REACTIONCPI
GOOD SURPRISE (<0.15%)S&P 500 +1 to +2%7%
CENTRAL (0.20-0.25%)S&P 500 +0.25 to +0.75%53%
BAD SURPRISE (0.25-0.30%)S&P 500 -0.5 to -1.25%33%
VERY BAD (>0.30%)S&P 500 -1.5 to -2.5%7%

The central case is benign, but the bad tail weighs more than the good one: that's why the market arrives nervous despite the record.

Approximate split of scenarios and their estimated S&P 500 reaction. They sum to 100 after normalizing.

TAIL
The extreme scenarios, unlikely but high impact.
NORMALIZE
Adjust the probabilities so they add up to 100%.

TODAY'S AGENDA

TODAY AND TOMORROW

The sequence that shapes the session

WED 12 AUG · 08:30 ETJULY CPIHighThe starting gun. The reaction shows in futures within a second.
WED 12 AUG · 09:30 ETWALL STREET OPENMediumThe cash session confirms or fades what futures anticipated.
WED 12 AUG · 16:00 ETAI CAPEX EARNINGSMediumAfter the close: a profitability test for AI spending.
THU 13 AUG · 08:30 ETJULY PPIHighA second inflation print in 24h: confirms or denies the CPI.

From the print to the open to earnings: this is how the key hours of the day chain together.

FUTURES
Contracts that price the index before the market opens.
AMC
After Market Close: earnings released after the US close.

WRAP

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Daily briefing · Mon-Fri 16:00 ET

CPI
Consumer Price Index, the data that moves the market most.
SURPRISE
The gap between the actual print and consensus.

Sources: 📅 12 Aug 2026 · 🏛 JPM scenarios

Editorial content. Not financial advice.

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