Tariffs On, Tariffs Off

Summary

• US equity markets rallied this week, capping off the best monthly gains since November 2023, as investors weighed encouraging inflation data against a whipsaw of court rulings on tariffs.
• Extending the on-again-off-again tariff saga, a trade court ruled that the tariffs were procedurally invalid, but an Appeals court paused the block, likely sending the decision to the Supreme Court.
• Rebounding from declines of 2.6% last week, the S&P 500 rallied 1.8% this week, closing within 4% of its February record highs.
• Ahead of the annual REITweek industry conference next week, real estate and other rate-sensitive market segments were among the leaders this week as long-term Treasury yields retreated from three-month highs.
• Continuing a stretch of encouraging inflation data over the past two months showing relatively modest net impacts from the initial wave of tariffs, the Core PCE Price Index - the Federal Reserve's preferred gauge of inflation - posted its lowest annual increase in April since March 2021.
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Analyst’s Disclosure:I/we have a beneficial long position in the shares of RIET, HOMZ, IRET, ALL HOLDINGS IN THE IREIT+HOYA PORTFOLIOS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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