Inflation Isn't Dead Yet

2025-02-16 09:00:00 ET

Summary

• US equity markets flirted with fresh record-highs this week while benchmark interest rates hovered around two-month lows as investors weighed positive earnings news against uncomfortable hot inflation data.
• Complicating the policy outlook for the Federal Reserve, CPI data showed the fastest monthly rise in consumer prices since August, prompting a pledge from Powell for "more work to do."
• Snapping a two-week losing streak, the S&P 500 rebounded by 1.5%, closing fractionally below its prior record-high set in late January. The tech-heavy Nasdaq 100 rallied nearly 3%.
• Real estate equities were mixed as earnings season kicked into high-gear with results from three dozen REITs - a generally positive slate of results fueling another half-dozen dividend increases.
• Among the upside highlights, Senior Housing REIT results showed robust - and continuing - momentum in senior housing operating fundamentals. Net Lease REITs were also positive standouts, while Office REITs stumbled after a strong start to earnings season.

Real Estate Weekly Outlook

US equity markets flirted with fresh record-highs this week while benchmark interest rates hovered around two-month lows as investors weighed positive corporate earnings results and fast-developing trade and peace talks against an uncomfortably hot slate of inflation data and hawkish Fed commentary. Complicating the policy outlook for the Federal Reserve - which had already paused its easing cycle last month after three successive cuts - and perhaps dealing a curveball to Trump tariff talks, closely watched CPI data showed that stubbornly elevated consumer price pressures lingered into early 2025....

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