Failure Fallout • Speculative Unwind • Jobs Day

March 9, 2023 | Hoya Capital

Failure Fallout • Speculative Unwind • Jobs Day Real Estate Daily Recap Mar 10 Written By U.S. equity markets finished sharply-lower again Friday as financial stability concerns rattled markets following the rapid collapse of Silicon Valley Bank, becoming the largest bank failure since 2008. Effectively erasing all of its gains for the year and posting its worst week since September 2022, the S&P 500 dipped another 1.4% today and declined 4.5% on the week.

Real estate equities were among the hardest-hit sectors today and for the week. The Equity REIT Index slid 3.5% today with all 18 property sectors in negative territory. The second-largest banking collapse in history, the collapse of Silicon Valley Bank - which focuses its lending on high-risk startups and technology firms - was remarkably swift, triggered initially by a credit rating downgrade, and cascaded quickly into a "run" on deposits.

The U.S. economy added 311k jobs in February - above expectations of 205k, but the relevant inflation-related metric - Average Hourly Earnings - was cooler-than-expected while the unemployment rate increased. Income Builder Daily Recap U.S. equity markets finished sharply-lower again Friday as financial stability concerns rattled markets following the rapid collapse of Silicon Valley Bank - the 16th largest bank in the U.S. - becoming the largest bank failure since 2008.

Effectively erasing all of its gains for the year and posting its worst week since September 2022, the S&P 500 dipped another 1.4% today while the Mid-Cap 400 and Small-Cap 600 each slid by nearly 3%. The Dow dipped 345 points. Real estate equities were among the hardest-hit sectors today and for the week. The Equity REIT Index slid 3.5% today with all 18 property sectors in negative territory, while the Mortgage REIT Index dipped 4.3%.

The second-largest banking collapse in history behind Washington Mutual in 2008, the collapse of Silicon Valley Bank ( SIVB ) - which focuses its lending on high-risk startups and ...