MGM Resorts outperformed while Lululemon lagged as consumer spending recovered in June after a slow start to the quarter.
The consumer discretionary sector, tracked by the XLY ETF, rose 6% in the second quarter, trailing broader market gains. The rebound followed a June revival in consumer spending after earlier declines amid inflation and waning confidence.
Prior to June, spending had softened due to persistent price pressures and reduced household sentiment. The sector’s performance contrasted with stronger gains in other segments of the market during the same period.
MGM Resorts led sector gains, while Lululemon underperformed, reflecting shifting consumer preferences and spending patterns.