Reported about 1 year ago
A recent rally in the stock market, triggered by hopes of rate cuts following a cool inflation report, has breathed new life into some previously underperforming US stocks. Real estate stocks, which have lagged behind the S&P 500 this year due to concerns over interest rates, surged as traders bet on easing measures. This sector's sensitivity to interest rates, especially for highly leveraged companies, led to significant gains for listed REITs and companies like Hudson Pacific Properties Inc. The rally reflects the sector's historical outperformance on days with softer-than-expected inflation data and highlights the impact of lower rates on asset values and refinancing opportunities.
Source: YAHOO