Between tariffs, sticky inflation, and ongoing weakness in the U.S. dollar, it has been a difficult year for the consumer discretionary sector. When household budgets are strained, consumers focus their purchasing power on essential goods and services, while new cars, electronics, vacations, and restaurant meals take a back seat.
Such has been the case in 2025, with the consumer discretionary’s year-to-date gain of 0.51% representing the second-worst performance of all of the S&P 500’s 11 sectors. Only the consumer staples sector, down 0.90%, has fared worse this year.
