Consumer Stocks SOAR to New Highs After Surprising Inflation Twist!
Stocks in the consumer discretionary sector received a significant boost on Tuesday following relatively mild inflation data. This development sparked optimism that consumers would have increased spending power if the pace of price hikes slowed down.
The Consumer Discretionary Select Sector ETF XLY, 3.32%, surged 1.5% to reach a two-month high during premarket trading, rising from a mere 0.5% before the release of the consumer price index data.
Stocks
Notably, Tesla Inc. TSLA, +4.40% saw a 4.1% jump toward a one-month high (compared to a 1.8% increase pre-data), Amazon.com Inc. AMZN, +3.01% climbed 1.7% to a 19-month high (versus 0.5% before the data), and Ford Motor Co. F, +5.79% gained 0.7%, up from 0.1% pre-data among the ETF’s most-active components.
Consumer staples companies, which provide essential goods, also experienced a positive impact from the Consumer Price Index (CPI). Walmart Inc. WMT, 0.33% shares increased by 0.3%, Target Corp. TGT, 4.46% rose by 1.2%, and Costco Wholesale Corp. COST, +1.61% tacked on 0.4%. Prior to the data release, Walmart’s stock was up 0.2%, Target’s was up 0.8%, and Costco’s was up 0.3%. Meanwhile, the SPDR S&P 500 ETF SPY, 2.04% surged 1.3%, up from a modest 0.1% increase before the data was made public.
