A Narrow Strait To Peace
US equity markets surged to record highs as optimism over a potential US-Iran peace deal and the reopening of the Strait of Hormuz drove a risk-on rally. Real estate equities also rose, with the Equity REIT Index increasing by 4.0%.
US equity markets reached fresh record highs as optimism over a potential US-Iran peace deal and the reopening of the Strait of Hormuz fueled a broad risk-on rally. The reopening eased fears of a major energy disruption that could have derailed global growth, rapidly repricing the risk of a prolonged oil shock. Cooler-than-expected PPI data and a solid start to earnings season supported equities. Real estate equities joined the rally, with the Equity REIT Index rising 4.0% as earnings season began with solid reports from industry bellwethers. Logistics sector stalwart Prologis rose 6% after strong results, while NYC-focused office REIT SL Green surged 13%. Renewed threats to shipping traffic underscored that progress toward de-escalation remains fragile.
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