U.S. stocks pulled back Tuesday morning as Wall Street recalibrated expectations on growth and inflation amid rising fiscal risks tied to President Donald Trump's sweeping tax proposal.
The two companies dominate the home improvement retail space, a category where consumer spending typically rises during periods of strong economic confidence.
U.S. stocks trimmed early-session losses by midday Monday, as investors showed limited concern after Moody's downgraded U.S. sovereign credit from Aaa to Aa1, effectively stripping the world's largest economy of its last top-tier credit rating.
Over the past month or so, the consumer discretionary sector has been one of the biggest beneficiaries of the overall recovery in U.S. stocks. After the April 21 close, the Consumer Discretionary Select Sector SPDR Fund (NYSEARCA: XLY) was down around 19% in 2025. It was the worst-performing of the 11 SPDR S&P 500 sector ETFs at that point.
Wall Street fought for a fifth consecutive day of gains on Friday, with major indexes edging slightly higher by midday in New York as investors continued to digest the week's significant trade breakthroughs and recalibrate their economic expectations.
The full impact of tariffs — including shifts in consumer buying habits and pressure on corporate balance sheets — is expected to unfold gradually over several months.
U.S. stocks traded mixed Thursday, with major indices posting timid midday gains as investors digested fresh economic data revealing signs of consumer strain and disinflationary pressure stemming from April's tariff escalation.
Wall Street's rally stretched into a second session Tuesday, fueled by improving investor sentiment after an early-week breakthrough in U.S.-China trade talks, easing inflation data and fresh geopolitical headlines involving major investment pledges from the Middle East.
Wall Street traded slightly lower by midday Friday, as investors adopted a wait-and-see stance ahead of a potential trade breakthrough, with high-stakes negotiations between U.S. officials—led by Treasury Secretary Scott Bessent—and Chinese authorities set to unfold over the weekend.
