
With those things in mind, investors might expect that stocks in the consumer discretionary sector would be a non-starter in mid-2025. After all, a recent employment situation report from the U.S. Bureau of Labor Statistics showed only 139,000 jobs added in May 2025, down significantly from 272,000 added in May 2024.
Interest rates have been persistently high, and consumer confidence remains mixed at best. The Consumer Discretionary Select Sector SPDR Fund (NYSEARCA: XLY), an exchange-traded fund (ETF) representing a wide swath of the sector, is down more than 2% year-to-date (YTD), even while the broader S&P 500 is up 3%.