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Investors Lose $1.8 Trillion With Consumer Stocks Mired in Record Rout

  • Consumer discretionary index suffers record first-half drop
  • Rare advancers in index this year have defensive qualities
RF markets stocks red

Source: Getty Images

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Investors in consumer stocks are nursing their wounds after witnessing a wipeout of $1.8 trillion in market value in the first half of the year as soaring inflation and swollen inventories crimp corporate profits.

The S&P 500 Consumer Discretionary Index slumped 33% in its worst first half of the year on record in a market strained by rising costs and surging interest rates. The group is the biggest loser on the S&P 500 Index as recession concerns weigh on shoppers’ spending decisions. Adding to that wall of worry, US consumer spending fell in May for the first time this year, signaling a cooling economy that’s on weaker footing.