Investors are shifting away from riskier assets like stocks and crypto, moving their money into the bond market—a phenomenon known as “Flight to Safety.”

A “risk-off” trade is exactly what it sounds like—when uncertainty rises, investors pull back. While the stock market may be exciting, the bond market offers a sense of security—like a cozy home with warm cookies and milk.

The Personal Consumption Expenditures (PCE) report showed headline inflation rising 0.3% for the month, while year-over-year inflation eased from 2.6% to 2.5%, aligning with expectations.

The core PCE, which excludes food and energy costs, also increased by 0.3% for the month, with annual inflation declining from 2.9% to 2.6%.

As inflation does, so does the interest rates.