Last week, markets reacted to economic data impacted by the government shutdown, particularly cooler-than-expected inflation. The delayed CPI release showed headline inflation slowing to 2.7% and core to 2.6%, though shutdown-related data gaps caused unusual distortions, particularly in shelter inflation. Labor market data painted a similarly uneven picture, with November job gains rebounding to 64,000 after the shutdown-skewed negative October numbers. The unemployment rose to 4.6%, due to what appears to be more workers re-entering the labor force. Treasury yields eased across the curve despite rising global yields, potentially signaling markets expect lower rates in 2026. Equity markets were quiet overall largely chopping sideways, with early-week tech weakness reversed after strong Micron earnings and softer CPI data seemed to improve sentiment. Market breadth contracted modestly as major indices remained just below recent highs.