REIT - An Epic Comeback

2025-05-04 09:00:00 ET

Summary

• US equity markets erased their post-Liberation Day sell-off this week - notching their best winning streak in two decades - as investors parsed surprisingly solid corporate earnings and employment data.
• A critical slate of employment data this week showed that job growth remained relatively strong in April, despite the extreme market volatility and plunge in consumer and business sentiment.
• The PCE Index - the Federal Reserve's preferred gauge of inflation - cooled to the lowest-level in almost five years, swinging the market narrative from "stagflation" and back towards "soft landing."
• The S&P 500 rallied another 2.9% this week - extending its rebound from its April 8th lows to nearly 15% and trimming its drawdown to 7.5% from its mid-February highs.
• Real estate equities were among the better-performers this week as investors digested a jam-packed slate of nearly 100 REIT earnings reports, which showed that property-level fundamentals have been virtually unaffected by the surge in tariff-related volatility in recent months.

Real Estate Weekly Outlook

US equity markets erased their post-Liberation Day sell-off this week - notching their best winning streak in two decades - after economic data and corporate earnings reports showed that economic conditions have softened only marginally in recent months while inflation continues to recede. A critical slate of employment data this week showed that job growth remained relatively strong in April despite the extreme market volatility and plunge in consumer and business sentiment, while GDP data also showed decent underlying momentum beneath the import-driven contraction on the headline figure. The PCE Index - the Federal Reserve's preferred gauge of inflation - cooled to the lowest-level in almost five years, swinging the market narrative from "stagflation" and towards "soft landing." Meanwhile, FactSet reports that 76% of S&P 500 companies beat earnings estimates so far this earnings season - above the ten-year average - while the percentage of guidance increases was above the long-run average despite the anticipated tariff effects....

For further details see: