PLDGP - Fed Looms As Sentiment Dims
2025-03-16 09:00:00 ET
Summary
- US equity markets remained under pressure this week as encouraging inflation data and a deal to avoid a government shutdown were offset by further tariff escalations and weak sentiment data.
- Markets struggled to agree on how the FOMC will interpret the latest economic data, with recent "hard data" showing encouraging trends while "softer" survey data has painted a far-bleaker outlook.
- Following its worst week in six months, the S&P 500 finished lower by another 2.3% this week - its fourth-straight week of declines - which dragged the index into "correction territory."
- Real estate equities were laggards this week, backtracking some of their outperformance since mid-January. Weighed down by pressure on economically sensitive property sectors, the Equity REIT Index declined 2.5%.
- Cell Tower REIT Crown Castle rallied 6% after announcing a long-rumored $8.5B deal to sell all of its Fiber and Small-Cell segments in two transactions to EQT and Zayo Group. Four REITs raised their dividends this week, while three REITs - including CCI - announced dividend reductions.
Real Estate Weekly Outlook
US equity markets remained under pressure this week - declining for the sixth time in the past seven weeks - as encouraging inflation data and a deal to avoid a government shutdown were offset by further tariff escalations and data showing a notable deterioration in consumer confidence. With the Federal Reserve in its "quiet period" ahead of next week's rate decision, markets struggled to agree on how the FOMC will interpret the latest economic data, as much of the "hard data" - CPI, PPI, and jobless claims - showed encouraging trends of easing inflation and resilient labor markets, while essentially all of the "soft data" - PMI business surveys, consumer expectations, and corporate commentary - painting a far bleaker picture of looming stagflation....
Fed Looms As Sentiment Dims