Hawkish Powell • Stocks Slump • Arbor Rebounds

June 21, 2023 | Hoya Capital

Hawkish Powell • Stocks Slump • Arbor Rebounds Daily Recap Jun 21 Written By Alex Pettee, CFA U.S. equity markets declined for a third-straight session Wednesday following a hotter-than-expected U.K. inflation report and Congressional testimony from Fed Chair Powell, who indicated support for two more rate hikes. Extending its week-to-date declines to about 1%, the S&P 500 slipped 0.5% today while the tech-heavy Nasdaq 100 posted steeper declines of 1.4%.

The Dow slipped 102 points. Real estate equities were also under pressure today as benchmark interest rates remained near three-month highs. The Equity REIT Index slipped 0.6% today but Mortgage REITs gained 0.8%. Commercial mortgage REIT Arbor Realty (ABR) rallied more than 7% today after S&P announced that it would be added to the S&P Small-Cap 600, extending its rebound to roughly 40% from its April lows when it was targeted by several short-selling firms.

Federal Reserve Chair Powell warned that markets should expect more rate hikes in the coming months, remarking that there remains "a long way to go” to get inflation back to the Fed's target range. Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets declined for a third-straight session Wednesday following a hotter-than-expected U.K. inflation report and Congressional testimony from Fed Chair Powell, who indicated support for two more rate hikes this year.

Extending its week-to-date declines to about 1%, the S&P 500 slipped 0.5% today while the tech-heavy Nasdaq 100 posted steeper declines of 1.4%. The Dow slipped 102 points. Real estate equities were also under pressure today as benchmark interest rates remained near three-month highs. The Equity REIT Index slipped 0.6% today with 14-of-18 property sectors in negative territory, but the Mortgage REIT Index finished higher by 0.8%. Homebuilders continued their impressive rebound ahead of results this afternoon from KB Home.

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