XLY Stock Recent News

TD Cowen senior research analyst Oliver Chen joins Catalysts host Madison Mills and Tematica Research chief investment officer Chris Versace to discuss the strength of retailers with bargaining power, such as Walmart (WMT), Costco (COST), and BJ's (BJ). To watch more expert insights and analysis on the latest market action, check out more Catalysts here: https://finance.yahoo.com/videos/series/catalysts/ #youtube #retail #consumer About Yahoo Finance: Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.

Looking for broad exposure to the Consumer Discretionary - Broad segment of the equity market? You should consider the Consumer Discretionary Select Sector SPDR ETF (XLY), a passively managed exchange traded fund launched on 12/16/1998.

Last week's economic reports painted a stark picture of rising inflationary pressures and plummeting consumer confidence, casting a shadow over the U.S. economy and sending the stock market into a decline. The Federal Reserve's preferred inflation gauge, the PCE Price Index, unexpectedly accelerated, reinforcing concerns about persistent price pressures.

Last week's economic data was plagued by uncertainty. A brief respite in inflation pressures was overshadowed by deepening anxieties among consumers and small businesses who are feeling unsure about what's ahead.

Consumer spending has been a strong point in the economy, but recent headwinds are building. The consumer discretionary sector has felt pressure due to recessionary concerns on top of pricing inflation from potential tariffs.

Tesla's TSLA stock suffered a massive drop on March 10, 2025, plunging 15%, marking its worst single-day performance since September 2020. This steep decline came on the heels of a broader market downturn, with the Nasdaq index falling nearly 4%—its sharpest decline since 2022.

Nobody is as aware of the market's conditions as institutional buyers and the banks that do the dealing for them since they employ hundreds (if not thousands) of qualified analysts and portfolio managers with their fingers on the pulse of global markets essentially all day, every single day. Regardless of experience or awareness of market conditions, an individual investor could never outcompete the scale and information flow these places have access to.

Buying the dip has been a successful strategy for decades. While the macro environment may create fear, history often shows that not investing during a market downturn is a missed opportunity.

XLY has underperformed due to significant declines in TSLA and weak consumer data. Consumer sentiment is low, with rising inflation expectations, declining retail sales, and increasing unemployment claims, indicating potential long-term headwinds for XLY. Despite potential technical support, any recovery in XLY may be short-lived, driven by oversold conditions rather than fundamental improvements.

Last week's economic data reflected growing apprehension. Despite GDP figures indicating continued expansion, weakening consumer confidence and persistent inflation concerns have cast a shadow of uncertainty.