Inversion Deepens • Fed Digs-In • Mixed Economic Data

November 16, 2022 | Hoya Capital

Inversion Deepens • Fed Digs-In • Mixed Economic Data Real Estate Daily Recap Nov 16 Written By U.S. equity markets slipped Wednesday while the yield curve reached fresh extremes as investors parsed a mixed slate of economic data and Fed commentary suggesting that a recession may be necessary to cool inflation. Dipping back into negative territory on the week, the S&P 500 slipped 0.8% today while the tech-heavy Nasdaq 100 declined 1.4% and the Mid-Cap 400 and Small-Cap 600 were lower.

Real estate equities were mostly lower today with the Equity REIT Index declining 0.9% with 16-of-18 property sectors in negative territory while the Mortgage REIT Index slipped 2.2%. Reflecting mounting recession fears combined with expectations that the Fed maintains a high tolerance for some "economic pain," the 10-2 Treasury Yield Curve spread widened to its most inverted level since 1982. A busy slate of economic data this morning painted a mixed picture of the state of the U.S. economy with strong retail sales data coming alongside a continued plunge in homebuilder sentiment and disappointing industrial production data.

Income Builder Daily Recap U.S. equity markets slipped Wednesday while the yield curve reached fresh extremes as investors parsed a mixed slate of economic data and Fed commentary suggesting that a recession may be needed to cool inflation. Dipping back into negative territory on the week, the S&P 500 slipped 0.8% today while the tech-heavy Nasdaq 100 declined 1.4% and the Mid-Cap 400 and Small-Cap 600 were lower by over 1.5% each.

Real estate equities were mostly lower today despite the downward pressure on long-term interest rates with the Equity REIT Index declining 0.9% with 16-of-18 property sectors in negative territory while the Mortgage REIT Index slipped 2.2%. Homebuilders declined 1% as another dip in Homebuilder Sentiment offset a strong slate of earnings results from the two largest home improvement retailers. Fed officials pushed back on an imminent pivot today across a ...