RWR - Fed Hikes Turmoil Ensues

2023-05-07 09:00:00 ET

Summary

• U.S. equity markets finished lower on a turbulent week after the Federal Reserve continued its historically-aggressive monetary tightening course, sparking renewed turmoil in the regional banking sector.
• After closing at its highest levels since early February last week, the S&P 500 slipped 0.8% this week, using a late-week rebound to pare its steepest four-day declines since the SVB collapse.
• Real estate equities and homebuilders were among the leaders for a third straight week, as a solid slate of earnings reports and a retreat in benchmark rates offset renewed credit concerns.
• Surprisingly buoyant rent growth - particularly across the residential, industrial, hospitality, technology, and retail sectors - was the prevailing theme across a strong slate of REIT earnings reports.
• A pair of REITs raised their dividend this week - Simon Property and Arbor Realty - while a pair lowered their payouts - City Office and Great Ajax. Blackstone plunged after limited redemptions in its flagship non-traded fund for a sixth-straight month.

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