By Karen Langley
Wednesday was not the day to bet on real-estate stocks.
The sector was down 4.5% in recent trading, easily the worst performance of the S&P 500's 11 segments. The decline put it on pace for its worst day since June 2022.
Blame interest rates. Investors often turn to real-estate stocks for their hefty dividend payments. When bond yields riseas they did after this morning's hotter-than-expected inflation reportthose dividends become less enticing.
Higher borrowing costs can also hurt earnings for the group, said James Ragan, director of wealth management research at D.A. Davidson.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
April 10, 2024 13:17 ET (17:17 GMT)
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