State Street Consumer Discretionary Select Sector SPDR ETF

XLY

Market cap $22.4B

Consumer spending has held up well despite economic headwinds. The state of inflation and the labor market will be key to watch.

The LSEG Retail/Restaurant Index reported Q1 2026 earnings growth of 27.2%. Retail earnings in the first quarter of 2026 received a significant boost from a historic tax refund season, reinforcing consumer spending at a time when the labor market remained resilient. Q2 2026 earnings are currently expected to mark the weakest growth rate of the year, with consensus forecasts calling for a gradual improvement during the second half of the year.

July 4 travel is set to stay strong despite inflation and high gas prices. These ETFs could benefit from holiday spending trends.

Last week's data reaffirmed that inflation pressures remain the defining narrative across the economic landscape. While finalized data reveals that economic growth expanded at a surprisingly strong pace back in the first quarter , more recent data points to broadening price pressures throughout the economy.

Investors now have more optionality when looking for Nasdaq 100 exposure. State Street Investment Management (SSIM) just launched the State Street SPDR Portfolio Nasdaq 100 ETF (QNDX).

For those who have been seeking targeted exposure to particular sectors of the equity market, the consumer discretionary sector may not have popped up as the top pick. However, choosing to not allocate to the sector at this moment could prove to be an oversight in the long run.

A Goldilocks U.S. economy could broaden the market rally. Here are five ETF areas poised to benefit from a decent growth and inflationary scenario.

Designed to provide broad exposure to the Consumer Discretionary - Broad segment of the equity market, the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) is a passively managed exchange traded fund launched on December 16, 1998.

The U.S. economy faced intensifying headwinds in May as both consumer and wholesale inflation metrics surged to multi-year highs. Driven largely by accelerating energy and supply chain costs, these dual jumps signal persistent upward price pressures that threaten to keep household expenses elevated.

Low approval ratings and a jump in inflation may be forcing President Donald Trump's hand in ending the war, with some asset prices already starting to anticipate that.