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Why options traders think Dec. 10 will be the most important day for markets before the end of 2025

1. Upcoming CPI report and Fed interest rate decision on Dec. 10 could cause volatility. 2. Options traders anticipate a 1.3% swing in S&P 500 due to these events. 3. Delayed jobs reports increase uncertainty regarding labor market state before Fed meeting. 4. CME Group estimates under 50% chance of a Fed rate cut next month. 5. Inflation rates remain at 3%, critical for Fed's credibility in rate decisions.

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FAQ

Why Bearish?

The uncertainty surrounding inflation data and potential rate cuts generally weighs on market sentiment. Historical examples show similar situations led to declines in the S&P 500.

How important is it?

The article discusses critical economic indicators that directly affect investor sentiment and S&P 500 movements.

Why Short Term?

Volatility expected around specific upcoming events, such as CPI and Fed announcements. Immediate reactions post these events will be crucial.

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