eal estate and homebuilder stocks outperformed while financials lagged.

Why should I care?

For markets: Lower yields don’t lift all boats.

When inflation surprises to the downside, investors often price in a gentler path for the Fed, and leadership can rotate fast. Real estate and housing benefited as the 10-year Treasury yield dipped, while financials slipped because lower long-term rates can pressure bank net interest margins. Crypto also tends to like easier financial conditions, which helped support bitcoin’s move higher.

Zooming out: Small CPI moves can shift big expectations.

A few tenths of a percentage point in inflation can change how restrictive investors think monetary policy needs to be, and that ripples across…