Hawkish Fed • Yields Jump • Week Ahead

March 21, 2022 | Hoya Capital

Hawkish Fed • Yields Jump • Week Ahead Real Estate Daily Recap Mar 21 Written By U.S. equity markets were modestly lower Monday- retreating from their best weekly gains since November 2020- after hawkish commentary from Fed Chair Powell sent bond yields soaring to three-year highs. Following gains of nearly 6% last week, the S&P 500 finished fractionally lower today while the tech-heavy Nasdaq 100 slipped 0.3% following a surge of over 8% last week.

Real estate equities were under-pressure today amid a surge in yields with the Equity REIT Index slipping 0.6% with 16-of-19 property sectors in negative territory while Mortgage REITs declined 1.2%. Fed Chair Powell today reiterated the central bank's aggressive stance to combat inflation, commenting that the committee is prepared to raise interest rates in "double-hike" 50-basis-point steps, if needed. Amid a busy week of scheduled Fed commentary, the economic calendar slows down a bit in the week ahead.

The major reports of the week are New Home Sales on Wednesday and Pending Home Sales on Friday. 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 were modestly lower Monday - retreating from their best weekly gains since November 2020 - as Treasury bond yields surged to the highest level since May 2019 following comments from Fed Chair Powell. Following gains of nearly 6% last week, the S&P 500 finished fractionally lower today while the tech-heavy Nasdaq 100 slipped 0.3% following a surge of over 8% last week.

Real estate equities were under ...