Marketbites: National Rent Prices Falling
Portfolio Manager Commentary:
The major markets fell on Tuesday to finish off a tough month for the stock market. Despite a solid start to the year, all of the major indexes posted their second negative month in three. The Dow ended 4.19% lower for the month and has dipped 1.48% year to date. The S&P 500 and Nasdaq Composite lost about 2.61% and 1.11% in February, respectively, but are still higher year to date.
Those losses came after a strong start to the year for stocks; the S&P 500 rallied more than 6% in January. However, a sharp jump in Treasury yields this month dented investor sentiment for stocks, as traders feared that higher Federal Reserve rates would remain in place for longer. On Tuesday, the benchmark 10-year U.S. Treasury note hit its highest level since November.
Chart of the Day:
Apartment rents fell in every major metropolitan area in the U.S. over the past six months through January, a trend that is poised to continue as the biggest delivery of new apartments in nearly four decades is slated for this year. Renters with new leases in January paid a median rent that was 3.5% lower than they would have paid last August, according to estimates from listing website Apartment List. It was the first time in five years that rent fell every month over a six-month period, according to the same estimates.