Yields Jump • Global PMI Contraction • REITs Lead

September 6, 2022 | Hoya Capital

Yields Jump • Global PMI Contraction • REITs Lead Real Estate Daily Recap Sep 6 Written By U.S. equity markets slumped Tuesday - extending the broad-based selloff over the past month - as interest rates took a fresh leg higher on expectations of tightening international monetary policy. Entering the session on a three-week losing skid, the S&P 500 declined another 0.4% today while the tech-heavy Nasdaq 100 declined for the seventh-straight session.

Despite the jump in long-term interest rates, real estate equities were among the few areas of strength today. the Equity REIT Index advancing 0.9% today with 15-of-18 property sectors higher. The benchmark 10-Year Treasury Yield jumped 15 basis points to 3.34% today - the third-highest daily close in the past decade while the US Dollar Index climbed to fresh 20-year highs. S&P Global reported this morning that August saw global economic activity contract for the first time since June 2020 while it revised lower its US Services PMI.

Interestingly, a separate ISM survey showed surprising strength in Services activity in August. Real Estate Daily Recap U.S. equity markets slumped Tuesday - extending the broad-based selloff over the past month - as interest rates took a fresh leg higher on expectations of tightening international monetary policy despite fresh PMI data showing a global economic contraction in August. Entering the session on a three-week losing skid, the S&P 500 declined another 0.4% today while the tech-heavy Nasdaq 100 dipped another 0.7% to extend its streak of declines to seven-straight days.

Despite the jump in long-term interest rates, real estate equities were among the few areas of strength with the Equity REIT Index advancing by 0.9% today with 15-of-18 property sectors in positive territory while the Mortgage REIT Index declined 0.3%. As discussed in our Real Estate Weekly Outlook , investor sentiment has soured since mid-July after Fed officials initiated a hawkish pivot despite a mounting slate of economic data showing ...