JPMorgan's trading desk gave a scenario outlook on how the market would respond to various monthly core CPI readings. The options market is pricing in a 0.7% move, either up or down, for the S&P 500, and a 1.6% move for the Russell 2000.

Further evidence of disinflation is expected with October’s Consumer Price Index report. However, jobs data will likely matter more to the Fed.

Headline CPI month over month came in at +0.2%, in-line with expectations and the September print. Stripping out volatile food and energy prices, core CPI month over month reached +0.3%, also in-line with both the consensus and the prior month.