Stock Market Volatility Persists Amid Mixed Inflation Signals and Rising Mortgage Rates
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U.S. equity markets remained turbulent this week amid mixed inflation data showing an energy-driven reacceleration in price pressures. Mortgage rates climbed to highest since 2000 despite retreat in benchmark rates.
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Consumer Price Index rose 0.4% in September, driven by resurgence in oil prices and sticky shelter inflation. Core CPI rose 0.3%, while CPI ex-shelter accelerated for 3rd straight month.
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Survey data showed intensified inflation concerns. Michigan consumer sentiment dipped in October, while inflation expectations jumped. Housing groups called for no more Fed rate hikes.
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Equity REITs advanced 1.6% this week, led by hotels and farmland. Industrial REIT Terreno noted moderation in rent growth in Q3. Medical Properties closed sale of four Australian facilities.
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Mortgage REITs rebounded 0.7% this week after three-week skid. Hannon Armstrong jumped 13% despite slashing dividend last week. Orchid Island cut dividend 25%, becoming 12th mREIT dividend cut this year.