- Wednesday, October 16, 2024
The real estate sector in the S&P 500 index is experiencing a significant surge on Tuesday, outperforming all other sectors. According to FactSet data, the S&P 500's real estate sector XX:SP500.60 was up by more than 5% in afternoon trading, marking the largest percentage jump since November 2022.
Investors are buoyed by the drop in Treasury bond yields, leading to a sharp climb in the U.S. stock market. Notable gains were also seen in sectors such as consumer discretionary, utilities, and materials, with all three witnessing increases of over 3% in afternoon trading.
Additionally, exchange-traded funds (ETFs) that focus on home builders are seeing a surge in the stock market rally. The SPDR S&P Homebuilders ETF XHB and the iShares U.S. Home Construction ETF ITB were up by 6.2% and 6.6% respectively, according to FactSet data.
Although the S&P 500's real estate sector has struggled this year, both ETFs have shown substantial growth. The iShares U.S. Home Construction ETF has skyrocketed more than 43% in 2023, while the SPDR S&P Homebuilders ETF has soared around 36%, surpassing the S&P 500's climb of more than 17% this year.
Simultaneously, Treasury yields are shrinking, with the 10-year Treasury note BX:TMUBMUSD10Y down by 17 basis points at approximately 4.45%, as per FactSet data.
Read: Homebuilder ETFs are beating the S&P 500 this year. Can their outperformance last amid banking sector worries?
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