Watching Energy and Regional Banks Post-Inflation Read

Interesting print for inflation this week, definitely keeping the Fed on their toes. I'm trying to gauge how much of the market's current trajectory is already priced in regarding future rate moves. The initial reaction to the CPI data felt a bit muted, but I'm looking at some sector rotations that might be signaling a deeper digestion.

Specifically, I've been keeping an eye on energy ($XLE is up to 63.85 today after bouncing around 63.81–64.7) as a potential inflation hedge if we see persistence, but also on the regional banks via an ETF like $PSP (currently at 63.115, down a bit today after trading 62.9592–63.54). The regional banks, particularly, seem sensitive to rate expectations and any whispers about the yield curve. If inflation proves sticky and rates stay elevated, there's a potential squeeze there, but if the market starts to truly believe in a soft landing and rate cuts next year, they could see some relief. Just trying to understand the crosscurrents before making any moves.