The yield curve is built into all assets - that's how you discount future stock earnings to derive present value. An inversion roughly means that the curve was wrong, i.e. the market was overly optimistic about how low the interest rates are going to be.

> Campbell R. Harvey's 1986 dissertation[4] showed that an inverted yield curve accurately forecasts U.S. recessions.

https://en.m.wikipedia.org/wiki/Yield_curve