Inflation Cools • Fed Minutes • REIT Updates

April 12, 2023 | Hoya Capital

Inflation Cools • Fed Minutes • REIT Updates Daily Recap Apr 12 Written By Alex Pettee, CFA U.S. equity markets finished lower Wednesday despite a pullback in benchmark interest rates after the critical CPI report showed a continued cooldown in inflationary pressures. Sliding into the close and giving back gains of nearly 1% earlier in the session, the S&P 500 closed lower by 0.4% today. The Dow slipped 38 points.

Real estate equities were also under pressure today despite the encouraging inflation news, with the Equity REIT Index slipping 0.5% with 16-of-18 property sectors in negative territory. The Consumer Price Index this morning showed a rather precipitous cooldown in inflationary pressures with the headline CPI inflation rate declining to 4.99% in March, down a full percentage point from the 5.99% annual rate in February. Ashford Hospitality (AHT) was among the leaders today after noting that it expects to report Revenue Per Available Room ("RevPAR") of $125 for the first quarter of 2023, which is 2.5% above 2019-levels.

Income Builder Daily Recap U.S. equity markets finished lower Wednesday despite a pullback in benchmark interest rates after the critical CPI report showed a continued cooldown in inflationary pressures. Sliding into the close and giving back gains of nearly 1% earlier in the session, the S&P 500 closed lower by 0.4% today, while the Mid-Cap 400 and Small-Cap 600 each declined 0.6%. The Dow slipped 38 points while the tech-heavy Nasdaq 100 dipped 0.9%.

Real estate equities were also under pressure today despite the encouraging inflation news, with the Equity REIT Index slipping 0.5% with 16-of-18 property sectors in negative territory, while the Mortgage REIT Index declined 0.2%. Benchmark rates pared their post-CPI report declines after minutes from the Federal Reserve's meeting showed that officials were unanimous in their support for the 25 basis point rate hike in March. The 2-Year Treasury Yield closed at 3.97% - down 9 basis points on the ...