REIT - Rally Gets Reality Check
2024-05-27 09:00:00 ET
Summary
- U.S. equity markets snapped a four-week winning streak while benchmark interest rates rebounded as hopes for imminent major central bank monetary easing were curtailed by stubbornly hot U.K. inflation data.
- Still hovering around all-time highs, the S&P 500 finished fractionally lower, but tech stocks were led higher by chip giant Nvidia on the heels of an impressive "AI-enhanced" earnings report.
- Halting a four-week rebound and continuing to be swung around by rate movements, real estate equities fell sharply this week as benchmark rates rebounded from one-month lows.
- Homebuilders also tumbled after sluggish home sales data and a slight rebound in mortgage rates pared recent optimism that housing markets can restore some long-awaited momentum into the peak season.
- With earnings season complete, we move into "dividend season." Net lease REIT Realty Income raised its dividend for the second time this year. We've tracked 40 REIT dividend hikes so far this year, while 9 REITs have reduced their payouts.
Real Estate Weekly Outlook
U.S. equity markets snapped a four-week winning streak while benchmark interest rates rebounded as hopes for multiple Fed rate cuts this year were curtailed by the combination of hot U.K. inflation data, hawkish Fed commentary from several swing voters, and surprisingly solid PMI data. Mirroring trends across the pond, hotter-than-expected consumer inflation data in the United Kingdom dashed hopes that the Bank of England could potentially kick-start a wave of major central bank easing next month....
Rally Gets Reality Check