PECO - Stagflation Is Back
2024-04-28 09:00:00 ET
Summary
- U.S. equity markets rebounded from their worst weekly decline in a year despite a continued uplift in benchmark interest rates, as a solid start to earnings season counteracted disappointing economic data.
- Ahead of the Fed's policy meeting in the week ahead, markets were confounded - albeit temporarily - by a "jarring" GDP report that showed a return of "stagflationary" trends.
- Defying the macro headwinds to post its best week since November, the S&P 500 rallied 2.8% on the week - erasing essentially all of its declines in the prior week.
- Following a shaky start to first-quarter earnings season, results over the past week were rather impressive. S&P 500 earnings growth is now expected to average 3.5% in Q1, up sharply from just 0.6% last week.
- REIT earnings results over the past week showed a surprising firming in multifamily rents despite ample supply, a notable rebound in office leasing, a continuation of strong retail fundamentals, but a slowing in logistics demand.
Real Estate Weekly Outlook
U.S. equity markets rebounded this week from their worst weekly decline in a year despite a continued uplift in benchmark interest rates, as a solid start to corporate earnings season counteracted disappointing economic data. Ahead of the Fed's policy meeting in the week ahead, markets were confounded - albeit temporarily - by a "jarring" GDP report that showed a return of "stagflationary" trends of weakening growth and sticky inflation in early 2024, a report that likely reinforced the central bank's recent hawkish pivot....
Stagflation Is Back