Higher Treasury Yields Weigh on Consumer Discretionary Stocks
The sector ETF has fallen about 8% as borrowing costs rise, while automakers and home improvement retailers report year-to-date losses.
Key takeaways
- The Consumer Discretionary ETF fell roughly 8% over the period of rising rates.
- Tesla, Home Depot and Lowe's shares are down year to date.
The S&P 500 Consumer Discretionary ETF has fallen roughly 8% as the 10-year Treasury yield climbed, according to Yahoo Finance. The yield recently reached its highest level since 2002.
As of Monday afternoon, the yield was 5.347%, up 1.33% since the previous close. XLY traded at $110.68, up 0.58% since the previous close.
Steve Sosnick, chief strategist at Interactive Brokers, said higher borrowing costs are hurting companies that sell products requiring financing, such as cars. Tesla shares are down 17% year to date, while Home Depot is down 18% and Lowe's has declined 25%.
This article was produced with the help of AI technology. Source: Yahoo Finance
