“What happens during a period of rising rates is retail and consumer discretionary stocks sell off compared to the S&P 500,” Cowen & Co.’s head of sales trading David Seaburg warned on CNBC. “If you look at a historical chart of the S&P 500 versus consumer discretionary six months prior and six months following a rate hike, you can see that in the six months prior consumer discretionary stocks outperform and then rates move and the S&P 500 starts to outperform.”
Consumer Discretionary Select Sector SPDR
For more information on the consumer sector, visit our consumer discretionary category.
Max Chen contributed to this article.