FBRT - Certainly Uncertain
2024-07-21 09:00:35 ET
Summary
- U.S. equity markets posted their worst week since April while benchmark interest rates rebounded from four-month lows as a wild week of political developments sparked a surge in volatility.
- Markets reflected a higher likelihood of a conservative victory after former President Trump survived an assassination attempt last weekend, adding fuel to the rotation from multinational growth towards value-oriented domestic.
- The tech-heavy Nasdaq 100 slid 4% on the week, as tech-specific concerns compounded pre-existing macroeconomic dynamics, but small-cap and mid-cap indices outperformed.
- Real estate equities led for a second-straight week, lifted by a strong start to REIT and homebuilder earnings season. All six REITs that reported results raised their full-year FFO outlook.
- Not exclusive to the political arena, "certainly uncertain" was the theme across economic reports this week as the Fed entered its "quiet period." Continuing Jobless Claims jumped to nearly four-year highs, but Retail Sales and Housing Starts topped modest estimates.
Real Estate Weekly Outlook
U.S. equity markets posted their worst week since April, while benchmark interest rates rebounded from four-month lows as a wild week of political developments sparked a surge in volatility and added fuel to the "value rotation" dynamic as the path solidified for Fed rate cuts later this quarter. Markets reflected a higher likelihood of a conservative victory after former President Trump survived an assassination attempt last weekend, while traders reacted to economic data, corporate earnings results, and Fed commentary which, in the aggregate, indicated a moderation in both economic growth and inflationary pressure and a likely pivot towards rate cuts in September....
Certainly Uncertain