XLY rose 1.5% amid mixed economic signals. The U.S. economy showed sharp deceleration in growth while inflation remained unexpectedly stubborn, with the Federal Reserve's primary inflation gauge hitting its highest level since early 2024. Consumer confidence inched up in February. The Supreme Court struck down key segments of President Trump's tariffs on Friday, ruling he exceeded his authority under the International Emergency Economic Powers Act. Following the ruling, Trump announced new 10% global tariffs under Section 122 of the Trade Act of 1974 and subsequently raised them to 15%. The court's decision does not prevent tariffs under other authorities, including Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974.
Read full analysisXLY rose 1.5% amid mixed economic signals. The U.S. economy showed sharp deceleration in growth while inflation remained unexpectedly stubborn, with the Federal Reserve's primary inflation gauge hitting its highest level since early 2024. Consumer confidence inched up in February. The Supreme Court struck down key segments of President Trump's tariffs on Friday, ruling he exceeded his authority under the International Emergency Economic Powers Act. Following the ruling, Trump announced new 10% global tariffs under Section 122 of the Trade Act of 1974 and subsequently raised them to 15%. The court's decision does not prevent tariffs under other authorities, including Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974.
XLY is an ETF tracking the Consumer Discretionary Select Sector of the S&P 500, holding stocks like Amazon and Tesla that depend on consumer spending on non-essential goods. Nearly half the fund's weight is concentrated in just two holdings, creating outsized sensitivity to moves in those names. Ongoing tariff policy shifts — including new 15% global tariffs announced after the Supreme Court struck down earlier levies — are a key overhang for the discretionary sector's outlook.