Summary
- U.S. equity markets were mixed on a choppy week as investors readjusted expectations for inflation and interest rates following data indicating an uptick in economic activity and persisting price pressures.
- Posting its first back-to-back weekly declines of the year, the S&P 500 slipped 0.2% this week, but other major benchmarks fared better. The Mid-Cap 400 and Small-Cap 600 both gained.
- Real estate equities were among the laggards this week as upward pressure on benchmark interest rates offset a generally solid slate of earnings results and encouraging dividend news.
- Real estate earnings season kicked into a higher gear with reports from nearly 40 REITs. Dividend hikes were a focus with another seven REITs raising their dividend while one REIT lowered its payout.
- A critical slate of inflation reports provided a mixed signal on the path of inflation - and by extension the Fed's monetary policy course - with both the CPI and PPI indexes showing a month-over-month uptick in inflation in January but a continued moderation in the annual rate.
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