AOMR - Welcome Back Goldilocks

Summary

• U.S. equity markets rallied on the first week of the year after employment data showed strong job growth alongside a cool down in wage pressures, reviving hopes of a 'soft landing'.
• After posting declines of nearly 20% in 2022, the S&P 500 advanced 1.5% on the week- snapping a three-week skid- while the domestic-focused Mid-Cap 400 and Small-Cap 600 gained 2.5%.
• Moderating rate pressures can't come soon enough for the yield-sensitive real estate sector, which led the gains this week after a particularly rough year in 2022. Equity REITs gained 2.3%.
• The December payrolls report showed that despite stronger-than-expected job growth, wages rose at the slowest pace since August 2021, providing evidence that a cooldown in inflationary pressures may not require a further intensification of monetary tightening.
• Asset management firm Blackstone remained in the spotlight this week after it announced that it received a $4B cash infusion from the University of California for its privately-traded real estate fund BREIT.

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