New York, Jan 13, 2026, 03:55 EST — Market closed.
- Shares of Best Buy dropped 4.9% on Monday, marking a turbulent start to the year for the retailer.
- Attention now turns to U.S. inflation figures set for release Tuesday, followed by retail sales data on Wednesday.
- Investors are weighing if tight credit combined with heavy promotions is damping demand for big-ticket electronics.
Best Buy Co., Inc. shares dropped 4.9% to $67.17 on Monday, slipping toward the day’s low as investors braced for Tuesday’s U.S. inflation report.
The December CPI report drops before the opening bell, with potential to shift expectations on interest rates amid jittery markets focused on Washington and the Fed. The Bureau of Labor Statistics will release the data at 8:30 a.m. ET.
For Best Buy, interest rates and consumer budgets hit close to home. Since many electronics are bought on credit, demand can drop sharply when wallets tighten.
The broader market, however, showed no signs of strain on Monday. The S&P 500 and Dow finished at record highs, with investors largely ignoring new Fed-related jitters, according to Peter Cardillo, chief market economist at Spartan Capital Securities.
Economists are bracing for the CPI to rebound following distortions from the recent government shutdown, with both headline and “core” CPI—excluding food and energy—expected to rise 0.3% month-over-month, according to a Reuters survey. Oscar Munoz, TD Securities’ chief U.S. macro strategist, described this as “meaningful payback.” Meanwhile, Wells Fargo’s Sarah House highlighted a bounce in goods prices after holiday discounts faded. Reuters
Rates traders have adjusted their forecasts. J.P. Morgan now sees the Fed’s next rate hike coming in 2027. At the same time, Goldman Sachs and Barclays shifted their predictions for rate cuts to mid-to-late 2026, Reuters reported.
Best Buy’s most recent major update arrived in late November, when it boosted its full-year forecast and highlighted stronger demand for computing and mobile gadgets. Truist analyst Scot Ciccarelli noted the retailer might see a short-term boost from Windows upgrades and new AI-driven laptops but warned that a more consistent product refresh cycle is crucial.
Since that time, the calendar has been sparse. Best Buy’s investor events page shows its latest earnings call took place on Nov. 25.
With fewer catalysts on deck, macro data will need to carry the weight for now. The Census Bureau is set to publish November retail sales at 8:30 a.m. ET Wednesday, offering a snapshot of discretionary spending following the holiday surge.
Credit remains a hot topic. Best Buy’s My Best Buy credit card, issued through Citibank, could face impacts from changes in card economics—crucial for promotional financing and those high-value purchases.
Best Buy faces a more straightforward headache: returns and markdowns. The retailer’s holiday return period for items bought between Oct. 31 and Dec. 31 extends until Jan. 15. If returns surge or clearance sales pick up speed during that window, margins could take a hit.
Tuesday brings the CPI report at 8:30 a.m. ET, followed by retail sales on Wednesday at the same time. After Monday’s decline, BBY traders will be sizing up whether the data eases rate concerns or fuels more caution around consumer electronics demand.
