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. CPI is a widely followed inflation metric that could send ripples through financial markets. Traders at JPMorgan broke down how they expect stocks will react to Wednesday’s report, with a focus on core CPI month over month, based on six different scenarios: 40% chance — The reading rises 0.3% to 0.35%: This is the most likely outcome, per JPMorgan traders. But “to state the obvious, the closer the print is to the lower bound, the stronger the positive reaction especially if we see a sub-0.30% print that rounds up to 0.3%,” said the traders. S & P 500 moves could range between a 0.5% loss and a 1% gain. 30% chance — Core CPI gains 0.35% to 0.4%: The S & P 500 would fall 0.5% to 1.25% under this outcome, even though such a report would not change investors’ pricing in a “disinflationary pathway for 24H2.” 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. “This positive tail could trigger a material rotation within Equities and could look very similar to Nov/Dec 2023, which was an ‘Everything Rally’ with [small and midcap stocks] outperforming,” they said. The S & P 500 would pop 1% to 1.5% under this outcome. 7.5% chance — Core CPI gains 0.2% to 0.25%: A decline in housing cost increases along with lower core goods prices could make this outcome possible. It would also send the S & P 500 up 1.5% to 2%, JPMorgan traders said. 2.5% chance — Core inflation rises less than 0.2%: Under this least-likely scenario, the S & P 500 would surge 2% to 2.5% and could lead investors to once again price in a June rate cut, JPMorgan traders said. The report comes after the Bureau of Labor Statistics reported that producer prices, which measure what wholesalers pay for raw goods, rose 0.5% in April . Economists expected a gain of 0.3%, per Dow Jones.