Yields Jump • Recession Watch • Fed Ahead

September 20, 2022 | Hoya Capital

Yields Jump • Recession Watch • Fed Ahead Real Estate Daily Recap Sep 20 Written By U.S. equity markets were under pressure again Tuesday as benchmark interest rates climbed to fresh multi-decade highs as investors brace for the Federal Reserve rate decision on Wednesday afternoon. Giving back yesterday's gains turning negative on the week, the S&P 500 slipped 1.1% today as the 10-Year Treasury Yield climbed to its highest level since 2007.

The Dow dipped 300-points. Real estate equities were among the laggards today with the Equity REIT Index sliding 2.4% with all 18 property sectors in negative territory while the Mortgage REIT Index slipped 1.6%. With the Fed expected to hike rates by another 75 basis points, the Atlanta Fed's GDPNow downwardly revised its Q3 GDP projection once again, which is now dangerously close to projecting a third-straight quarter of GDP contraction.

The downward revision today was prompted by a mixed slate of home construction data as the Census Bureau reported a steep drop in single-family building permits in August, which overshadowed a better-than-expected rise in total housing starts driven by strength in multifamily construction. Real Estate Daily Recap U.S. equity markets were under pressure again Tuesday as benchmark interest rates climbed to fresh multi-decade highs as investors brace for the Federal Reserve rate decision on Wednesday afternoon.

Giving back yesterday's gains turning negative on the week, the S&P 500 slipped 1.1% today as the 10-Year Treasury Yield closed at its highest level since 2007 at 3.57%. Real estate equities were among the laggards today with the Equity REIT Index sliding 2.4% with all 18 property sectors in negative territory. The Mortgage REIT Index slipped 1.6% while homebuilders remained under pressure on data showing a continued moderation in single-family home construction.

All eleven GICS equity sectors finished lower today while Crude Oil declined 1% and the US Dollar Index pushed through fresh two-decade highs. With the Federal Reserve expected ...