NEW YORK, Jan 21, 2026, 20:49 EST — The market has closed.
Home Depot’s stock climbed 2.54% on Wednesday, closing at $384.64 following a choppy two-day run for the home-improvement giant. 1
This matters because Home Depot stands at the crossroads of the two forces steering tape action this week: trade-policy news and the interest-rate trajectory that shapes housing and major renovation spending. Its next key moment comes Feb. 24, when the company will release fourth-quarter earnings. 2
Sentiment turned sharply on Tuesday. Home Depot dipped 1.33% to $375.11 after the previous session, yet it outperformed several retail and home-improvement competitors amid a wider market selloff. 3
Wall Street flipped on Wednesday after President Donald Trump announced a framework deal on Greenland and backed off threatened tariffs against several European nations. The S&P 500 climbed 1.2%, while the 10-year Treasury yield slipped to roughly 4.25%, AP reported. 4
Lowe’s, Home Depot’s nearest publicly traded competitor, also saw gains. Shares rose 3.22% to close at $277.11, boosting the wider home-improvement sector.
Housing data signaled a weaker start to 2026. Pending home sales in the U.S., which track signed contracts on existing homes awaiting closing, dropped 9.3% in December. That decline dragged the index down to its lowest level in five months, according to Reuters. 5
“The housing sector is not out of the woods yet,” warned National Association of Realtors Chief Economist Lawrence Yun, pointing to tight inventory and a slowdown in new contract signings. 6
Analysts remain cautiously optimistic. On Tuesday, TD Cowen raised its 12-month price target for the stock to $450 from $410 and maintained a buy rating, according to Benzinga data. 7
That said, the risks are clear. If mortgage rates and borrowing costs remain stubbornly high, home sales could grind to a halt, delaying major remodeling projects. On top of that, tariff chatter can send building-material prices swinging wildly, sometimes shifting sharply with just a policy announcement overnight.
Traders on Thursday will focus on whether the relief rally can sustain itself amid shifting bond yields and ongoing housing news. Home Depot’s next big event is its Feb. 24 earnings report, which will shed light on demand trends heading into spring.
