Data Center M&A • Peaking Inflation? • Sell-Off Deepens

May 11, 2022 | Hoya Capital

Data Center M&A • Peaking Inflation? • Sell-Off Deepens Real Estate Daily Recap May 11 Written By U.S. equity markets finished lower again Wednesday in another volatile session after CPI inflation data failed to show significant signs of easing, likely keeping the "pedal-to-the-metal" for Fed monetary tightening. Now having shed more than 8% in the past five trading sessions, the S&P 500 declined another 1.7% while the tech-heavy Nasdaq 100 dipped 3.0% to the cusp of a 30%-drawdown.

Real estate equities were relative outperformers today amid a tough start to the month as the Equity REIT Index declined by 0.2% today with 8-of-19 property sectors in positive territory. Peak Inflation? Perhaps Not Quite Yet. Consumer prices rose at a hotter-than-expected pace in April but did ease slightly from the four-decade-high rate set last month as cost increases for food, airline fares, and vehicles kept persistent upward pressure on prices.

The data center REIT sector remains a hotbed of M&A activity. Data center REIT DigitalBridge (DBRG) announced that it will acquire data center operator Switch (SWCH), leveraging its private equity platform to outbid Brookfield Asset Management. Income Builder Daily Recap We recently launched Hoya Capital Income Builder - a premier income-focused investment research service through Seeking Alpha Marketplace - that will be the new exclusive home of all of Hoya Capital's investment research.

Income Builder focuses on real income-producing asset classes that offer the opportunity for diversification, monthly income, capital appreciation, and inflation hedging. If you're not already on board, give us a try with a completely risk-free two-week trial and take a look around. U.S. equity markets finished lower again Wednesday in another volatile session after CPI inflation data failed to show significant signs of easing and likely kept the "pedal to the metal" for the Fed to continue on its accelerated path of monetary tightening.

Now having shed more than 8% in the past five trading sessions, the S&P ...