The early arrival of a Santa Claus rally has graced the real estate sector, with the bearer of good tidings being none other than Federal Reserve Chair Jerome Powell, who has signaled the possibility of interest rate cuts in 2024.
This anticipation, coupled with the sector’s high sensitivity to the move in Treasury yields — with the 10-year note falling below the 4% threshold — has triggered a spectacular bullish wave across real estate stocks in recent sessions.
Since the release of the Federal Open Market Committee (FOMC) rate statement and Powell’s subsequent press conference Wednesday, no sector within the S&P 500 index has seen growth anywhere near that of real estate.
Market Snapshot: S&P 500 Sector Performance Since Fed Meeting
A glimpse at the S&P 500 sector performance since 2 p.m. Wednesday to 3 p.m. Thursday reveals the following:
| ETF Name | Performance (%) |
|---|---|
| Real Estate Select Sector SPDR Fund (NYSE:XLRE) | +6.21% |
| Energy Select Sector SPDR Fund (NYSE:XLE) | +4.07% |
| Materials Select Sector SPDR Fund (NYSE:XLB) | +3.58% |
| Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) | +3.29% |
| Industrials Select Sector SPDR Fund (NYSE:XLI) | +2.67% |
| Financial Select Sector SPDR Fund (NYSE:XLF) | +2.46% |
| Utilities Select Sector SPDR Fund (NYSE:XLU) | +1.23% |
| Communication Services Select Sector SPDR Fund (NYSE:XLC) | +1.2% |
| Health Care Select Sector SPDR Fund (NYSE:XLV) | +0.48% |
| Technology Select Sector SPDR Fund (NYSE:XLK) | +0.47% |
| Consumer Staples Select Sector SPDR Fund (NYSE:XLP) | -0.06% |
Read also: Real Estate, Small-Cap, Gold Miner, Solar Stocks Go Wild On Prospect Of Fed Rate Cuts
Chart: Real Estate Outperforms All Other Sectors Since Fed’s Dovish Pivot
Top Real Estate Stock Movers
Leading the performance within this week’s XLRE ETF are the following stocks:
| Name | Industry | Price Chg. % (5D) |
|---|---|---|
| Prologis, Inc. (NYSE:PLD) | Industrial REITs | 14.91% |
| Boston Properties, Inc. (NYSE:BXP) | Office REITs | 13.05% |
| Extra Space Storage Inc. (NYSE:EXR) | Specialized REITs | 12.52% |
| Kimco Realty Corporation (NYSE:KIM) | Retail REITs | 11.57% |
| Simon Property Group, Inc. (NYSE:SPG) | Retail REITs | 10.96% |
| Host Hotels & Resorts, Inc. (NYSE:HST) | Hotel and Resort REITs | 10.29% |
| Essex Property Trust, Inc. (NYSE:ESS) | Residential REITs | 10.28% |
| Alexandria Real Estate Equities, Inc. (NYSE:ARE) | Office REITs | 10.07% |
| CBRE Group, Inc. (NYSE: |
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