Economic Fear Pummels Stocks Tied to Americans’ Spending
- Discretionary index fell 15% in past month, trailing S&P 500
- ‘It really is a tough environment getting tougher,’ Kaser says
Corporations that count on discretionary spending are having an increasingly difficult time, which is weighing on their bottom lines.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
President Donald Trump’s fickle trade policies are raising concerns about US economic stability, and the stocks most reliant on the strength of the American consumer are starting to feel the pinch.
From retailers to airlines to restaurant operators, corporations that count on discretionary spending are having an increasingly difficult time, which is weighing on their bottom lines. Investors are reacting, sending the S&P 500 Consumer Discretionary Index down for a fourth straight week. The sector is down 15% in the past month, almost double the decline in the broader S&P 500 Index.