Relief Rally • Tensions Ease • Inflation Cools

March 14, 2023 | Hoya Capital

Relief Rally • Tensions Ease • Inflation Cools Real Estate Daily Recap Mar 14 Written By U.S. equity markets rebounded Tuesday as concerns over financial instability were eased by indications of an orderly liquidation of SVB's assets and CPI data showing an easing of core inflation. After closing at its lowest-levels since early January on Monday, the S&P 500 advanced 1.7% today- closing near the highs of the session- while the tech-heavy Nasdaq 100 rallied 2.3%.

Real estate equities advanced for a second session, with the Equity REIT Index gaining 0.9% today with 16-of-18 property sectors in positive territory, while the Mortgage REIT Index gained 1.0%. As expected, the Consumer Price Index showed a modest month-over-month uptick in inflation in February but a continued moderation in the annual rate, providing fodder to both sides of the inflation debate. The metric that we watch most closely - CPI-ex-Shelter Index - showed an eighth straight month of cooling in the year-over-year rate.

Using a real-time rent index, we observe a sharp decline in inflation since mid-2022, with this "Real-Time CPI" slowing to 3.16% in February and averaging less than 1% over the past eight months. Income Builder Daily Recap U.S. equity markets rebounded Tuesday as concerns over financial instability were eased by indications of an orderly liquidation of SVB's assets and by CPI data showing an easing of core price pressures in February.

After closing at its lowest-levels since early January on Monday, the S&P 500 advanced 1.7% today - closing near the highs of the session - while the tech-heavy Nasdaq 100 rallied 2.3% and the Dow rebounded by 336 points. Real estate equities advanced for a second session, with the Equity REIT Index gaining 0.9% today with 16-of-18 property sectors in positive territory, while the Mortgage REIT Index gained 1.0%. Homebuilders were among the leaders as well as mortgage rates fell sharply this week alongside the dip in Treasury yields. ...