REIT - Trade Talks, Fed Hawks, Market Balks
2025-05-11 09:00:00 ET
Summary
- US equity markets posted modest declines this past week after the Federal Reserve held rates steady and maintained its status quo "wait-and-see" approach, but acknowledged heightened inflation and labor market risks.
- Meanwhile, White House officials headed to Switzerland to begin high-level trade talks with China, which follows the announcement of the first major post-Liberation Day trade deal with the United Kingdom.
- Following its best two-week stretch since late 2022, the S&P 500 slipped 0.4% this week - extending its drawdown to around 8% from its mid-February record highs.
- Pressured by the uptick in interest rates, real estate equities were laggards this week despite a solid conclusion to earnings season in which upward guidance revisions outnumbered reductions by three-to-one.
- Commercial mortgage REITs delivered a particularly strong week after the final wave of reports showed that loan performance stabilized in recent months despite the tariff-related volatility. Cold Storage REIT Americold reported surprisingly soft results and lowered its outlook.
Real Estate Weekly Outlook
US equity markets posted modest declines this past week - while benchmark interest rates rose to the upper-end of their recent range - after the Federal Reserve held rates steady and maintained their status quo "wait-and-see" approach. Meanwhile, White House officials headed to Switzerland to begin high-level trade talks with China - potentially addressing one of the major looming recession threats - which follows the announcement of the first major post-Liberation Day trade deal with the United Kingdom which maintained baseline 10% tariffs on U.K. imports, but exempted cars, steel, and aluminum....
Trade Talks, Fed Hawks, Market Balks