Housing-Linked Stocks Led Consumer Sector Gains Last Week On Renewed Rate Cut Expectations

Consumer stocks gained last week, in line with the broader market, which hit another record high on renewed expectations of a rate cut by the Federal Reserve this month.

The Consumer Discretionary Select Sector SPDR Fund (XLY) rose 1.5%. The Consumer Staples Select Sector SPDR Fund (XLP) rose 0.1% after a significant 2% decline in the week prior.

Here are the consumer and retail stocks that posted the highest gains:

Williams-Sonoma, Inc. (weekly gain 7.6%)

The home decor and furniture retailer saw a relief rally last week, after shares fell over concerns about its annual forecast issued late last month. Shares also received a lift after Argus raised its price target to $212 from $190, alongside growing expectations for rate cuts.

Williams-Sonoma's business is closely linked to the housing market, which would significantly benefit from lower interest rates.

D.R. Horton Inc. (weekly gain 7.6%)

Momentum continued for home builders last week, as confidence after strong quarterly results from the sector's top companies was compounded by rate cut expectations.

Lower interest rates translate to lower mortgage rates, which typically boost real estate purchases.

Peers PluteGroup and Lennar Corp gained 6.9% and 6.6%, respectively, last week, while DHI shares have gained in six of the previous seven weeks.

The Campbell's Co. (weekly gain 7.6%)

Shares of the soups and snacks company gained 7% on Wednesday after it forecast fiscal 2026 net sales largely above expectations and beat the fourth-quarter profit estimate.

Although the results were mixed (the 2026 profit forecast was below expectations), investors found solace in Campbell's comments on cost-saving and tariff mitigation efforts. A string of analysts raised their price target on the stock in the aftermath.

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