According to Jinshi Data, stock option pricing shows that the S&P 500 index may fluctuate by about 1.1% on Wednesday. The recent rise in U.S. stocks makes it difficult for the stock market to cope with disappointment if the Federal Reserve cuts interest rates by a smaller margin.

Tara Hariharan, managing director of global macro hedge fund NWI Management, said that with U.S. stocks near all-time highs and likely already pricing in a deep easing cycle by the Federal Reserve, the risk-reward bias for further gains looks grim.