🛒 Consumer stocks hold steady as weak payrolls lift Fed cut bets; Lululemon Declines | Retail Sector Insights
(XLY) was flat on Thursday even as weak jobs data fueled rate cut expectations. Nonfarm payrolls rose by just 22,000, pushing unemployment to 4.3%. Lululemon tumbled after cutting sales guidance, yet XLY remains near 2025 highs alongside Communication Services.
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Below are AI-generated insights on moves in the consumer discretionary sector, powered by MarketReader technology.
Friday, September 5
XLY [-0.1%]
Consumer Discretionary Select Sector SPDR Fund (XLY)
The Consumer Discretionary Select Sector SPDR Fund (XLY) is experiencing a stable price movement, remaining unchanged since Thursday. The U.S. labor market exhibited notable weakness in August, with nonfarm payrolls rising by only 22,000 jobs, well below the anticipated 75,000, and an unemployment rate increasing to 4.3%. This data has elevated expectations for a Federal Reserve interest rate cut at their upcoming meeting on September 17th. Lululemon Athletica Inc., a key holding in XLY, saw its stock drop significantly after revising its full-year sales guidance downward due to tariff pressures and declining trends in North America. Meanwhile, XLY is among only two S&P 500 sector ETFs reaching 2025 highs, alongside Communication Services Select Sector SPDR Fund (XLC). The S&P 500 Index has declined by 0.55%, reflecting broader market sentiment.