Alex Pettee, CFA
Jobs, Jobs, Jobs: REITs Rally On Employment Rebound
U.S. equity markets finished sharply higher this week as strong employment and housing data - as well as progress on vaccine development - overwhelmed concerns of a potentially intensifying pandemic.
Bouncing back from last week's decline of 2.8%, the S&P 500 jumped 4.1%, continuing its "reopening rally" after ending the second quarter with gains of 20%, its best quarter since 1998.
Recovering from steep declines last week, real estate equities were among the strongest performers this week. REITs surged by 5.1% with all 18 property sectors in positive territory.
This week's gains were bolstered by a generally encouraging slate of employment data, capped off by a record-setting BLS nonfarm payrolls report on Friday, but critics question the sustainability of the rebound.
One segment of the economy that has seen an undeniable V-shaped recovery has been the U.S. housing sector. Pending Home Sales surged by the most on record in May as housing continues to lead the early stages of the economic rebound.