Wall St Week Ahead:

Elevated U.S. interest rates are pressuring the U.S. retail sector, where shares of many companies have been dented by months of tight monetary policy while a select few have soared.

The S&P 500 Consumer Discretionary Distribution & Retail index, is up nearly 14% this year, roughly keeping pace with the S&P 500’s year-to-date gain. Much of the sector’s strength, however, has been concentrated in a small group of stocks, including heavyweight Amazon.com which is up nearly 21% this year.

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Meanwhile, shares of companies focused on lower-income consumers have struggled, in-part because buyers in that segment have been more affected by elevated interest rates, analysts said. Among the biggest laggards are shares of Dollar Tree which are down nearly 27% year-to-date and Dollar General which have fallen nearly 9%.

The retail sector is one of several areas of the economy - in addition to real estate and consumer staples - that have been pressured by elevated rates.  

 Elevated U.S. interest rates are putting pressure on the U.S. retail sector, leading to mixed performance among retail companies. While some companies have seen their shares soar, many others have been negatively affected by months of tight monetary policy 

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