Bad Vibes, Positive Results

2025-02-23 09:00:00 ET

Summary

• US equity markets slumped this week - while benchmark interest rates tumbled to two-month lows - after downbeat economic data and cautious corporate commentary sparked concern over slowing economic growth.
• Compounded by some unsettling COVID-related headlines late in the week, investors adopted a more "risk off" position after consumer and business survey data picked up a sudden negative sentiment shift.
• After notching a pair of record-highs early in the week, a two-day tumble sent the S&P 500 lower by 1.6% on the week. Small-Caps and Mid-Caps both dipped over 3%.
• Buoyed by the interest rate retreat, real estate equities were among the best-performing sectors this week, as investors cheered a relatively strong slate of REIT earnings results and dividend increases.
• Six more REITs raised their dividends this week, lifting the earnings season total to over 25. Upside standouts this week included cold storage, farmland, casino, and net lease REITs. Economically-sensitive sectors - hotel, billboard, and office REITs - lagged this week.

Real Estate Weekly Outlook

US equity markets slumped this week - while benchmark interest rates tumbled to two-month lows - after downbeat economic data and cautious corporate commentary sparked concern over slowing economic growth. Compounded by some unsettling COVID-related headlines late in the week, investors adopted a more "risk off" position after consumer and business survey data picked up a sudden negative shift in economic sentiment in late January and early February - reflecting renewed interest rate and inflation concerns alongside policy uncertainty - which dragged the Citi Economic Surprise Index into negative territory for the first time since last September....

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