2023-03-26 09:00:00 ET
Summary
- U.S. equity markets posted gains while benchmark interest rates dipped to the lowest levels of the year as lingering financial stability concerns cast doubt on the Fed's economic and interest-rate projections.
- Posting a second-straight week of gains following its worst weekly decline in six months, the S&P 500 advanced 1.5% while the tech-heavy Nasdaq 100 gained another 1.8%.
- Real estate equities were laggards this week as investors weighed potential tailwinds from lower interest rates against increased credit concerns across several property sectors.
- Homebuilders were a bright spot on data showing a rebound in home sales and a retreat in mortgage rates, suggesting the housing market is beginning to stabilize after a tumultuous year.
- Office REITs remained under pressure this week after Blackstone stopped making debt payments on its $325M loan on the Hughes Center office campus in Las Vegas. CMBS spreads increased this week to the highest levels since July 2020.
For further details see:
The Fed Disconnect