Rates rise, defensives outperform, stocks stabilize on inflation news

U.S. financial markets are juggling higher borrowing costs, sector rotations, and evolving inflation expectations. Mortgage rates are climbing just as the spring home-buying season begins, pressuring affordability. At the same time, the global consumer staples ETF KXI has outperformed the S&P 500 over the past year with lower volatility, signaling a tilt toward defensive plays. Major U.S. stock indexes recently steadied after an encouraging inflation report eased Wall Street’s concerns about how AI and other forces might fuel future price pressures.