INDT - The 'D' Word

Summary

• U.S. equity markets posted broad-based gains after the closely-watched CPI inflation report showed signs of easing inflationary pressures, strengthening the case for the Fed to slow its pace of rate hikes.
• Pushing its year-to-date gains to above 4% following a dismal year of performance in 2022, the S&P 500 advanced 2.7% on the week while the tech-heavy Nasdaq 100 rallied 4.5%.
• Real estate equities - the sector with perhaps the most upside from easing rate pressures - were leaders on the week. Equity REITs gained 4.5%, while Mortgage REITs rallied 6%.
• The "D word" - disinflation - dominated the discussion after the closely-watched CPI-ex-Shelter Index - the metric that showed the historic surge in inflation a year before it was reflected in the headline CPI - was negative for the fifth month in the past six.
• Four REITs hiked their dividends this week, continuing the momentum following a record-setting pace of dividend hikes in 2021 and 2022. M&A was also a theme this week with VICI staying active while Blackstone remained in focus.

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