Hawkish Pause • PPI Plunge • REIT Dividend Hikes
U.S. equity markets were mixed Wednesday after the Federal Reserve paused its rate hiking cycle but signaled that further hikes are still on the table despite another slate of cooler-than-expected inflation data.
Closing at its highest level of the year for a fifth-straight session, the S&P 500 climbed 0.1% today and the tech-heavy Nasdaq 100 rallied 0.7%, but the Dow slipped 233 points.
Real estate equities were among the leaders today as long-term interest rates pulled back from three-month highs despite the hawkish Fed rhetoric. The Equity REIT Index advanced 0.4% today.
A pair of REITs hiked their dividend. Realty Income (O) - the largest net lease REIT - hiked its monthly dividend for the third time this year, while Host Hotels (HST) hiked its quarterly dividend by 25%, becoming the 57th REIT to raise its dividend this year.
Following a cooler-than-expected CPI report yesterday, the Producer Price Index data showed an even sharper moderation of price pressures. The headline PPI declined 0.3% in May - the fourth monthly decline in six months - dragging the annual increase to just 1.1%.
Income Builder Daily Recap
U.S. equity markets were mixed Wednesday after the Federal Reserve paused its interest rate hiking cycle but signaled that further hikes are still on the table despite another slate of cooler-than-expected inflation data this morning. Closing at its highest level of the year for a fifth-straight session, the S&P 500 advanced another 0.1% today while the tech-heavy Nasdaq 100 rallied another 0.7%, but the Dow slipped 233 points. Real estate equities were among the leaders today as long-term interest rates pulled back from three-month highs despite the hawkish Fed rhetoric. The Equity REIT Index advanced 0.4% today with 12-of-18 property sectors in positive territory, while the Mortgage REIT Index finished lower by 0.1%. Homebuilders slipped ahead of earnings results this afternoon from Lennar.
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