OPI - Tariffs On, Tariffs Off

2025-06-01 09:00:00 ET

Summary

• US equity markets rallied this week, capping off the best monthly gains since November 2023, as investors weighed encouraging inflation data against a whipsaw of court rulings on tariffs.
• Extending the on-again-off-again tariff saga, a trade court ruled that the tariffs were procedurally invalid, but an Appeals court paused the block, likely sending the decision to the Supreme Court.
• Rebounding from declines of 2.6% last week, the S&P 500 rallied 1.8% this week, closing within 4% of its February record highs.
• Ahead of the annual REITweek industry conference next week, real estate and other rate-sensitive market segments were among the leaders this week as long-term Treasury yields retreated from three-month highs.
• Continuing a stretch of encouraging inflation data over the past two months showing relatively modest net impacts from the initial wave of tariffs, the Core PCE Price Index - the Federal Reserve's preferred gauge of inflation - posted its lowest annual increase in April since March 2021.

Real Estate Weekly Outlook

US equity markets rallied this week - capping off the best monthly gains since November 2023 - while benchmark interest rates retreated from three-month highs as investors weighed encouraging inflation data against a whipsaw of court rulings that blocked - and then unblocked - the implementation of tariffs. While financial markets effectively "blocked" the initial reciprocal tariff framework through a punishing sell-off that prompted a tariff reduction to a baseline 10% rate, the judiciary was the source of additional roadblocks this week. Extending the on-again-off-again tariff saga, a U.S. trade court ruled that utilizing emergency authority to enact sweeping tariffs was procedurally invalid, but a Federal Appeals court issued a stay to allow the tariffs to temporarily remain in place, likely pushing the decision to the Supreme Court....

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