Fed Hikes, Turmoil Ensues

May 7, 2023 | Hoya Capital

Fed Hikes, Turmoil Ensues Sector Report Weekly Outlook May 7 Written By Alex Pettee, CFA U.S. equity markets finished lower on a turbulent week after the Federal Reserve continued its historically-aggressive monetary tightening course, sparking renewed turmoil in the regional banking sector. After closing at its highest levels since early February last week, the S&P 500 slipped 0.8% this week, using a late-week rebound to pare its steepest four-day declines since the SVB collapse.

Real estate equities and homebuilders were among the leaders for a third straight week, as a solid slate of earnings reports and a retreat in benchmark rates offset renewed credit concerns. Surprisingly buoyant rent growth - particularly across the residential, industrial, hospitality, technology, and retail sectors - was the prevailing theme across a strong slate of REIT earnings reports. A pair of REITs raised their dividend this week - Simon Property and Arbor Realty - while a pair lowered their payouts - City Office and Great Ajax.

Blackstone plunged after limited redemptions in its flagship non-traded fund for a sixth-straight month. U.S. equity markets finished lower on a turbulent week after the Federal Reserve continued its historically-aggressive monetary tightening course, sparking renewed turmoil in the regional banking sector. In a unanimous decision that received "very strong across the board,” the central bank highlighted resilience in labor markets as it shrugged off recent real-time data showing a significant moderation in inflation and recent banking industry turmoil that has resulted in three of the four largest bank collapses in history over the past month, a decision that sent several other lenders to the brink.

READ THE FULL REPORT HERE Alex Pettee, CFA Comments (0) Newest First Oldest First Newest First Most Liked Least Liked Add Comment --> Preview Edit --> Post Comment… Previous Previous Inflation Week • Stocks Mixed • REIT Earnings Next Next Jobs Day • Stocks Rebound • REIT Dividend Hikes & Cuts