Daily Recap: Another Day, Another Record
Done deal. US equity markets rallied to new record-highs after the U.S. and China signed Phase 1 of the long-awaited trade deal between the two largest economies.
The S&P 500 gained 0.2% and the Dow Jones climbed 0.4% while the 10-Year Treasury Yield finished lower by 3 basis points to close at 1.79%.
Yield-sensitive equity sectors led the way as the broad-based Real Estate ETF climbed by 0.9% with all fifteen sectors in the green, led by industrial, healthcare, and net lease REITs.
After muted CPI inflation data yesterday, PPI data was much expected this morning. Core PPI is higher by just 1.29% year-over-year, the coolest rate since early 2017.
Bottom Line: The 'Goldilocks' economic conditions of modest, domestic-led economic growth and muted inflationary pressures are ideal conditions for residential and commercial real estate outperformance.