Tale Of 2 Cities
U.S. equity markets extended their rebound this week as a strong slate of earnings reports clashed with renewed concerns over financial instability and economic data that provided fodder for both bulls and bears.
Closing at its highest levels since early February, the S&P 500 advanced 0.9%, but gains were skewed towards larger companies. The Mid-Cap 400 slipped 0.3%, and the Small-Cap 600 declined 1.0%.
Real estate equities were among the leaders for a second-straight week, lifted by a strong slate of earnings results that have challenged the distinctly negative sentiment surrounding commercial and residential.
Homebuilders continued their resurgence following a punishing 2022 as New Home Sales rose to the highest level in a year in March. Residential REITs reported that rents have firmed in recent months following a sharp cool-down last year.
Reports from office REITs - and their commercial mortgage REIT lenders - showed that the degree of pessimism might be overblown. A pair of Sunbelt-focused office REITs raised their full-year outlook, while mREITs reported limited loan performance issues.
Best of times, or worst of times? U.S. equity markets extended their rebound this week as a strong slate of earnings reports clashed with renewed concerns over financial instability and economic data that provided fodder for both bulls and bears. Ahead of a Federal Reserve meeting this coming week in which the central bank is expected to continue a historically aggressive rate hiking cycle, investors shrugged off renewed tremors of instability in the financial system as First Republic Bank (FRC) - one of the nation's fifteen largest banks - appeared likely to become the third major bank failure of the past two months.
