REITs Surge Amid Reopening Rally
U.S. equity markets extended their reopening rally this week amid signs of an emerging "V-shaped" post-pandemic economic recovery juxtaposed with scenes of violence in the streets of major U.S. cities.
The U.S. economy unexpectedly added 2.5 million jobs in May - the single-largest month of job growth ever - following two months of devastating job losses during the coronavirus-related shutdowns.
Closing 42% above its lows in late March, the S&P 500 added another 4.9% this week while the Nasdaq climbed to fresh record-highs, a seemingly unfathomably feat back in March.
Real estate equities have been among the biggest winners of the reopening rebound. Equity REIT ETFs gained another 10.9% this week, led by a 50% surge from mall REITs.
The U.S. housing sector has foretold the emerging consumer-led rebound for several weeks. High-frequency data continues to indicate that the housing industry will be an early leader of the post-pandemic recovery.