Summary
- U.S. equity markets posted their worst week of the year as benchmark interest rates jumped to three-month highs on data showing a surprising reacceleration in inflation and economic activity in January.
- Declining for a third straight week - a skid that follows a stretch of four-of-five weekly gains to start the year - the S&P 500 dipped 2.7% while the Nasdaq declined over 3%.
- Real estate equities and other yield-sensitive market segments were among the laggards this week as continued upward rate pressure offset a generally solid slate of earnings results and positive dividend news.
- The path to an economic "soft landing" got more turbulent after the PCE Price Index - the Fed's preferred gauge of inflation - showed similar trends of perky price pressures on display in last week's slate of inflation reports.
- Dividend hikes were in focus on the busiest week of real estate earnings season, with eight more REITs raising their payouts. Storage and Hotel REITs were upside standouts this week, while farmland and technology REITs were under pressure on mixed outlooks.
For further details see:
Inflation Remains A Problem