How to position your portfolio as inflation cools

US Treasury yields (^FVX, ^TNX, ^TYX) are falling on the heels of May's Consumer Price Index (CPI), with its headline figure unchanged from April. Tematica Research chief investment officer Chris Versace joins Morning Brief to discuss the market reaction to the print.

"Clearly, the numbers were better than what the market was looking for. That explains the market move that we're seeing... It's also explaining why we're seeing Treasury yields move lower, particularly for the ten-year," Versace explains. He states that May's CPI is making the market excited about the prospect of interest rate cuts.

However, Versace says investors should not get too excited about this print, as the Federal Reserve will weigh several economic indicators to get an overall inflation picture ahead of any potential cuts. The strategist adds that investors should look for opportunities in the second half of the year as inflation cools and points to Applied Materials (AMAT) as one such opportunity.

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