Inflation is the word this week, and Wall Street is set to get its next data set Wednesday. April's consumer price index reading is slated for release at 8:30 a.m. ET. Economists polled by Dow Jones expect CPI, a measure of what consumers pay for goods and services, to have risen 0.4% month over month and 3.4% year on year. Core CPI, which strips out volatile food and energy prices, is expected to have gained 0.3% from the previous month and 3.6% from the year-earlier period.
" 10% chance — Core inflation climbs more than 0.4%: The S & P 500 would drop 1.75% to 2.5% under such a hot report, JPMorgan traders predict. "Look for a sell-off across all risk assets and investors may find sanctuary in commodity plays with Defensives outperforming on the move lower," they said. 10% chance — The reading increases between 0.25% and 0.3%: This outcome would be possible if shelter inflation eases, said the JPMorgan traders.