The housing sector may be on the verge of a rebound, supported by anticipated Federal Reserve interest rate reductions. These potential cuts could act as an economic stimulus, particularly benefiting industries tied to home improvement and construction. n nHome Depot and Lowe’s, two major players in the home improvement retail space, are scheduled to release their latest earnings reports on Tuesday and Wednesday, respectively. So far this year, their stock performance has been relatively flat—each rising by less than 2%, lagging behind the broader market’s nearly 10% gain in the S&P 500. n nInvestors are watching closely to see if softer monetary policy could reinvigorate consumer spending on home-related products. With borrowing costs possibly declining, demand for home renovations and big-ticket purchases might pick up, giving these retailers a much-needed lift. The upcoming financial disclosures could offer clues about shifting consumer behavior and the overall health of the residential market. n— news from The Wall Street Journal
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How Fed Rate Cuts Could Offer Stimulus for the Housing Economy
📧 This is an online version of our Markets A.M. newsletter, guest-written this week by Aaron Back. Get investing insights in your inbox each weekday by signing up here—it’s free. 📧 n nHome Depot and Lowe’s have been in a holding pattern along with the broader housing economy. But they could be about to break out. n nThe two home retailers are reporting earnings on Tuesday and Wednesday, respectively. Their shares have done little so far this year—both are up less than 2%, compared with a nearly 10% rise in the S&P 500.