Stocks Rebound • Inflation Cools • Fed Minutes

January 4, 2023 | Hoya Capital

Stocks Rebound • Inflation Cools • Fed Minutes Real Estate Daily Recap Jan 4 Written By U.S. equity markets rebounded Wednesday while benchmark interest rates declined as investors weighed downbeat economic data against Fed minutes showing reluctance to prematurely ease the pace of monetary tightening. Following declines of 0.4% yesterday, the S&P 500 advanced 0.8% today while the tech-heavy Nasdaq 100 gained 0.5% and the Mid-Cap 400 rallied 1.5%. Buoyed by the pull-back in benchmark interest rates, real estate equities were again among the leaders today.

Equity REITs gained 2.3% while Mortgage REITs advanced 2.1%. Investors received more encouraging news on the inflation front this morning as ISM manufacturing data showed that prices paid by factories in December declined to the lowest level in nearly three years. The first major employment report of the week- the JOLTS survey- showed signs of persistent tightness in labor markets, however, with job openings remaining at nearly 10.5 million in November.

Income Builder Daily Recap U.S. equity markets rebounded Wednesday while benchmark interest rates declined as investors weighed downbeat economic data against Fed minutes showing reluctance to prematurely ease the pace of monetary tightening. Following declines of 0.4% yesterday, the S&P 500 advanced 0.8% today while the tech-heavy Nasdaq 100 gained 0.5% and the Mid-Cap 400 rallied 1.5%. Buoyed by the pull-back in benchmark interest rates, real estate equities were among the leaders for a second-straight session with the Equity REIT Index advancing by 2.3% today with all 18 property sectors in positive-territory while the Mortgage REIT Index advanced another 2.1%.

The 10-Year Treasury Yield ( US10Y ) dipped another 7 basis points today to 3.71% as investors parsed manufacturing data showing mounting signs of cooling economic growth and cooler-than-expected inflation data in Europe. Crude Oil prices fell nearly 5% - each retreating for a second-straight session after climbing to their highest levels in two months last week. Yield-sensitive equity sectors were among the ...