Improved Consumer Sentiment and Affordable Housing Boost Consumer Companies

The recent release of muted inflation data has sparked optimism among consumers, leading to a rise in consumer company stocks. This positive trend is further supported by the significant decrease in two- and 10-year Treasury yields, which is expected to result in lower mortgage rates. As a result, shares of property-market service firms have soared, with Zillow Group witnessing an impressive surge of over 10% and real-estate brokerage Compass experiencing a growth of more than 15%.

Economists at brokerage BNP Paribas have also highlighted that the prices of non-housing services have fallen, alleviating concerns regarding inflation in this particular sector. They believe that while a weaker labor market would be necessary to fully restore non-housing services inflation to target-consistent levels, there are indications of “immaculate disinflation” in this category, especially when considering the high levels it has reached in the past.

In other news, holiday travel is predicted to be the third-busiest period since the AAA began tracking it in 2000. An estimated 55.4 million people are planning to travel 50 miles or more from home during this period.

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