New York, Feb 8, 2026, 14:17 EST — Market closed.
- Real estate ETFs climbed on Friday, lifted by a wider recovery across U.S. equities.
- REITs sensitive to interest rates have a packed week ahead, with U.S. data releases on tap—payrolls and CPI have both been rescheduled.
- Yields and sector sentiment may shift as Treasury rolls out its midweek auctions for notes and bonds.
U.S. real estate shares climbed Friday, just before another batch of U.S. economic numbers. The Real Estate Select Sector SPDR Fund (XLRE) advanced 1.8% to $41.99. Vanguard’s VNQ picked up 1.6%. Equinix, focused on data centers, jumped roughly 5%. Simon Property Group, which owns malls, tacked on 1.2%.
This shift is notable for REITs, since the sector typically reacts to rates—when yields rise, REIT valuations can take a hit, and borrowing gets more expensive. Now, investors have their eyes on a packed week: U.S. retail sales land Tuesday, non-farm payrolls (bumped to Wednesday), then Thursday brings existing home sales, with CPI to finish the week on Friday, IG pointed out. (IG)
Bonds did little to support REITs heading into the weekend. The 10-year U.S. Treasury yield wrapped up Friday at about 4.21%, the two-year settled close to 3.50%. Futures traders stayed focused on June for the Fed’s next rate move, according to Reuters. “The market looks like it was getting a bit overdone to the downside,” Robert Pavlik, senior portfolio manager at Dakota Wealth, told Reuters. (Reuters)
Stocks rebounded. The Dow finished over 50,000 for the first time, while the S&P 500 tacked on almost 2%—chipmakers catching a bid as bets on AI infrastructure spending held firm. Amazon, though, dropped after warning of a steep increase in capital expenditures, according to Reuters. (Reuters)
REITs didn’t move in lockstep on Friday. Data-center and digital infrastructure stocks managed to hold firmer than the traditional dividend-focused crowd. Mall owners and industrial landlords, meanwhile, mirrored the broader appetite for risk.
Still, the bigger move ahead could be driven more by rates than by rents. Investors have started to rethink the timeline for Fed rate cuts, and when that narrative flips, sectors like real estate—highly sensitive to rates—tend to react quickly.
On the supply front, Treasury is lining up $58 billion in three-year notes for auction Tuesday. Then $42 billion in 10-year notes goes up for grabs Wednesday, followed by $25 billion worth of 30-year bonds Thursday. Settlement for all three: Feb. 17. (U.S. Department of the Treasury)
Still, it wouldn’t take much for things to unravel fast for real estate names this week. Any sign of rising inflation, a strong jobs number, or a messy auction that spikes yields could slam Friday’s gains—particularly for REITs, which are more exposed to debt markets.
Property owners linked to retail and services are keeping an eye on consumer demand. Early February saw U.S. consumer sentiment pick up to 57.3—marking the strongest read since last August—but concerns about jobs and living costs are still “widespread,” according to the University of Michigan’s Joanne Hsu, cited by Reuters. Nationwide’s Oren Klachkin, also speaking to Reuters, suggested sentiment may have found its floor, though he’s not “optimistic for a sharp rebound.” (Reuters)
Real estate stocks face their first big tests this week, with the payrolls report on Wednesday and CPI data hitting Friday. Stable yields could keep the sector steady. But if yields start rising, REITs usually take the initial hit.
