Alex Pettee, CFA
All Eyes On Fed As Reopenings Stall
U.S. equity markets retreated on a choppy week after a downbeat slate of economic data heightened concern that the recent COVID resurgence could stall or reverse the global economic reopenings.
Exhibiting a reversion back to the "stay at home" trading patterns, the large-cap S&P 500 and tech-heavy Nasdaq posted modest declines on the week, but the Mid-Cap 400 and Small-Cap 600 dipped over 2%.
Residential REITs led the way this week after fresh data showed that national rents rose by record-high rates in July with many major markets seeing double-digit rent growth.
Office REITs were under pressure as additional corporations announced delays in their return-to-the-office plans. Retail REITs slipped as high-frequency activity data suggests a stall in economic reopenings.
All eyes will be on the Federal Reserve in the week ahead as investors expect to hear Fed officials begin to back off their tapering plans during their annual Jackson Hole Symposium.
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