"Investors Brace for Inflation Impact on Stock Market"

Traders are increasingly betting on a potential stock market decline as the S&P 500 approaches a record high ahead of crucial U.S. inflation data. The surge in equity put/call ratio indicates more traders are hedging or betting on a market downturn, with the highest daily ratio since December 2022. This move into put options reflects concerns about the market's reaction to upcoming inflation data, although some view this as a contrarian indicator of excessive fear. Despite the spike in put buying, total open positions in individual equity options still lean bullish, and the S&P 500 index's put/call ratio remains near the bottom of its recent range.