State Street SPDR S&P Retail ETF

XRT

Market cap $705M

Stacey Widlitz, SW Retail Advisors president, joins 'Power Lunch' to talk the impact of tariffs and today's SCOTUS decision on retail stocks.

Target, Nike and Hasbro stand to be big beneficiaries as the SCOTUS ruling could lower costs, analysts say, but stocks of retail giants like Walmart and Costco fell.

The retail industry cheered a Supreme Court ruling that struck down some of President Donald Trump's global tariffs. Clothing, footwear and discretionary items were among the imports most vulnerable to Trump's tariffs, which imposed steep rates on countries such as China and Vietnam.

In a blockbuster ruling Friday, the Supreme Court judges said Trump went too far when he slapped “reciprocal” tariffs around the globe under a federal emergency-powers law — and hit select imports in the name of fighting fentanyl trafficking.

USO surged as oil jumped over 4% on rising U.S.-Iran tensions, lifting energy ETFs while pressuring retail, airline and India funds.

The SPDR S&P Retail ETF ( NYSEARCA:XRT ) tracks the S&P Retail Select Industry Index with equal-weighted exposure across 73 retail holdings spanning apparel, grocery, discount, and specialty retail.

XRT and other retail ETFs come into focus after flat December sales and weak real spending cast a shadow over the 2025 holiday season.

The U.S. economy began 2026 with a display of unexpected resilience in the labor market, even as long-term data revisions painted a more modest picture of 2025 growth. While consumer spending showed signs of exhaustion during the holiday season, inflation continued its downward trajectory, reaching levels not seen in several years.

The Advance Retail Sales Report from the Census Bureau showed consumer spending was unexpectedly flat in December. Headline sales were unchanged, down from November's 0.6% reading and below the projected 0.4% growth.

As the second half of January begins, the U.S. economy presents a picture of cooling inflation and resilient consumer activity. While consumer price growth hit a six-month low in December and retail sales rebounded to start the holiday season, investor sentiment has reached a fever pitch.