Rates Rise • Strong Jobs Data • REIT Updates
U.S. equity markets finished lower Thursday after a strong slate of employment data strengthened the case for additional monetary tightening, lifting benchmark interest rates towards the highest-levels of the year.
Slumping for a second-straight day and erasing its week-to-date gains, the S&P 500 slipped 0.8% today, while the Mid-Cap 400 and Small-Cap 600 each posted declines of over 1%.
Real estate equities were among the laggards as the recent surge in interest rates has curbed much of the sector's positive end-of-quarter momentum. The Equity REIT Index dipped nearly 1%.
Interest rates rose on data showing continued resilience across labor markets, even as a historically-swift pace of monetary tightening has resulted in a "rolling recession" across several key industries including housing, transportation, and manufacturing.
Sotherly Hotels (SOHO) was among the leaders today after it provided preliminary second-quarter operating metrics, noting that its Revenue Per Available Room ("RevPAR) increased to $131.16, which was 5% higher than last year and roughly 4% above pre-pandemic 2019-levels.
Income Builder Daily Recap
U.S. equity markets finished lower Thursday after a strong slate of employment data strengthened the case for additional monetary tightening, lifting benchmark interest rates towards the highest levels of the year. Slumping for a second-straight day and erasing its week-to-date gains, the S&P 500 slipped 0.8% today, while the Mid-Cap 400 and Small-Cap 600 each posted declines of over 1%. The tech-heavy Nasdaq 100 finished lower by 0.8% today, while the Dow dipped 366 points. Real estate equities were among the laggards today as the recent surge in benchmark interest rates has curbed much of the sector's positive end-of-quarter momentum. The Equity REIT Index finished lower by 0.8% today, with 14-of-18 property sectors in negative territory, while the Mortgage REIT Index fell 2.3%. Homebuilders declined nearly 4% as mortgage rates rose highest-levels of the year.
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