NEW YORK, Jan 2, 2026, 12:47 ET — Regular session
- Home Depot shares rose about 1% in midday trade, outpacing the broader market.
- The move followed a White House decision to delay planned tariff hikes on kitchen cabinets and vanities.
- Investors are watching trade policy fallout and next week’s U.S. jobs data for clues on rates and housing-sensitive demand.
Home Depot shares rose $3.33, or about 1%, to $347.43 in midday trading on Friday, after swinging between $341.10 and $348.40 earlier in the session.
The gains come as investors digest a late-year trade-policy turn: U.S. President Donald Trump signed a proclamation delaying planned tariff increases on upholstered furniture, kitchen cabinets and vanities for another year, the White House said.
That matters for Home Depot now because cabinetry and related categories sit close to the heart of big-ticket remodeling, where price increases can quickly change what shoppers are willing to tackle. Home Depot’s latest outlook already assumed a muted backdrop for the home-improvement market, leaving policy shocks to costs and pricing in sharper focus.
Home Depot’s rival Lowe’s rose $4.53, or about 1.9%, while the SPDR S&P 500 ETF Trust — a proxy for the broader market — edged up around 0.1%.
The tariff shift keeps in place a 25% levy on the targeted goods, while pushing back a planned move to 30% on upholstered furniture and 50% on kitchen cabinets and vanities, according to the Associated Press.
Mizuho Securities analyst David Bellinger said the delay gives the sector “breathing room,” Barron’s reported. 1
Tariffs are taxes on imports, and retailers often have to choose between raising prices, squeezing suppliers, or accepting lower profit margins when levies rise. A delay can blunt near-term cost pressure, but it can also keep price competition intense if rivals use the relief to discount.
For Home Depot, the bigger investor debate remains demand, not just costs. The chain leans on large-project spending tied to housing turnover and financing conditions, areas that have been choppy as borrowing costs stay elevated.
Investors will also watch whether tariff uncertainty resurfaces elsewhere in home-related categories, and how quickly suppliers and retailers adjust sourcing and inventory plans. That can show up in gross margin trends and in how aggressively retailers promote higher-priced projects.
The next major macro test is the U.S. employment report for December, due Jan. 9, which can sway interest-rate expectations and housing sentiment in the new year.
Home Depot’s next quarterly update later in February will be another checkpoint for traders looking for evidence of a turn in big-ticket demand, along with any fresh commentary on pricing and supply conditions after the tariff reprieve.
