DHC - Eyes On The ECB

2024-06-02 09:00:00 ET

Summary

• U.S. equity and bond markets staged a late-week rebound, erasing early-week declines prompted by disappointing Eurozone inflation data, after the crucial PCE inflation gauge posted its smallest increase of 2024.
• Posting a second week of modest declines following four-straight weekly gains, the S&P 500 finished lower by 0.4% on the week, but still notched its best month since February.
• Real estate equities also rebounded following steep declines in the prior week as a handful of REITs provided positive business updates ahead of the annual REITweek industry conference.
• Following lukewarm Consumer and Producer Price Index data earlier this month, PCE Price Index data was generally a "sigh of relief" for investors fearing another Fed-spooking setback in the April report.
• A handful of REITs published updated investor presentations ahead of the REITweek industry conference in the week ahead. Updates from apartment REITs this week showed a continued rebound in multifamily fundamentals in early 2024, with blended rent growth inflecting higher following a two-year cooldown.

Real Estate Weekly Outlook

U.S. equity and bond markets staged a late-week rebound, erasing early-week declines prompted by disappointing Eurozone inflation data, after the crucial PCE inflation gauge posted its smallest increase of the year. Posting a second week of modest declines following four-straight weekly gains, the S&P 500 finished lower by 0.4% on the week, but still notched its best month since February. High-flying technology stocks dragged on the downside this week, with the tech-heavy Nasdaq 100 sliding 1.4%. Closing some of their historically wide underperformance spread relative to their larger-cap peers, the Small-Cap 600 posted gains of 0.8% on the week, while the Mid-Cap 400 advanced 0.8%. Real estate equities also rebounded following steep declines in the prior week as a handful of REITs provided positive business updates ahead of the annual REITweek industry conference. The Equity REIT Index advanced 1.7% on the week, with 13 of 18 property sectors in positive territory, while the Mortgage REIT Index gained 1.2%....

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