NEW YORK, August 13, 2026, 18:22 EDT — With U.S. cash markets closed and after-hours trading ongoing, the State Street Consumer Staples Select Sector SPDR ETF (NYSEARCA:XLP) rose 1.08% to $86.00, exceeding the S&P 500 by 0.38 percentage point as the benchmark hit a new high.
The increase stood out during Thursday’s risk-on trading. The Nasdaq climbed 0.81%, with technology stocks moving higher. However, staples stocks led the market, as health care and industrial sector funds declined.
Market breadth drove the investor signal. Just 0.55 percentage point of XLP’s 1.08% gain came from its ten biggest holdings, while the balance of 0.53 point was contributed by the portfolio’s other 37.86%.
| Market proxy | August 13 close | Daily move | Versus XLP |
|---|---|---|---|
| Consumer Staples SPDR (XLP) | $86.00 | +1.08% | — |
| S&P 500 SPDR (SPY) | $777.88 | +0.70% | -0.38 point |
| Nasdaq-100 ETF (QQQ) | $732.07 | +1.16% | +0.08 point |
| Utilities SPDR (XLU) | $44.04 | +0.46% | -0.62 point |
| Health Care SPDR (XLV) | $168.38 | -0.04% | -1.12 points |
| Industrials SPDR (XLI) | $185.79 | -0.05% | -1.13 points |
Producer prices in July held steady, missing economists’ forecasts for a 0.2% increase. Prices for goods dropped 0.7%, as services prices climbed 0.2%. The combination lessened immediate concerns over rates and may provide a cost advantage for packaged-goods firms.
Markets assigned a 63% probability to the Federal Reserve pausing rates next month. “The background of high amounts of cash in the system and Fed not hiking” should support risky assets, Jefferies economist Mohit Kumar said. Gains in staples indicated investors were broadening their focus beyond technology. Reuters global-markets report
| Top XLP holding | Weight | Daily move | Estimated XLP contribution |
|---|---|---|---|
| Walmart NASDAQ:WMT | 10.41% | -0.25% | -0.03 point |
| Costco Wholesale NASDAQ:COST | 8.97% | +1.29% | +0.12 point |
| Procter & Gamble NYSE:PG | 7.35% | +0.12% | +0.01 point |
| Coca-Cola NYSE:KO | 6.92% | +0.82% | +0.06 point |
| Philip Morris International NYSE:PM | 6.48% | +1.46% | +0.09 point |
| Colgate-Palmolive NYSE:CL | 4.60% | +0.66% | +0.03 point |
| Altria Group NYSE:MO | 4.49% | +1.09% | +0.05 point |
| PepsiCo NASDAQ:PEP | 4.36% | +1.38% | +0.06 point |
| Monster Beverage NASDAQ:MNST | 4.31% | +1.52% | +0.07 point |
| Mondelez International NASDAQ:MDLZ | 4.25% | +2.17% | +0.09 point |
| Top ten total | 62.14% | — | +0.55 point |
Walmart, the top holding, slipped 0.25%. Procter & Gamble was little changed. Despite this, the fund advanced over 1%, supported by gains in Mondelez, Monster Beverage, and several mid-sized food companies.
Kraft Heinz NASDAQ:KHC, not among the fund’s top ten holdings, advanced 3.47%. General Mills added 1.91%. These gains contributed to smaller positions accounting for around half of the fund’s overall increase.
| XLP industry group | Portfolio weight | Investor exposure |
|---|---|---|
| Staples distribution and retail | 33.28% | Walmart, Costco and competitors |
| Beverages | 20.09% | Soft drinks and energy beverages |
| Household products | 16.57% | Cleaning supplies and personal essentials |
| Food products | 15.39% | Packed foods and snack items |
| Tobacco | 10.99% | Nicotine offerings |
| Personal care | 3.68% | Personal beauty and hygiene |
The fund carries a relatively high absolute cost. State Street disclosed a forward price-to-earnings ratio of 20.68 times, with projected long-term EPS growth at 6.62%. Investors are prioritising stability over swift growth.
| Company | Analyst ratings | Average target | Implied return | Latest cited call |
|---|---|---|---|---|
| Walmart | 26 Buy, 3 Hold, 0 Sell | $140.78 | +21.7% | BofA Buy, $144, Aug. 12 |
| Costco | 13 Buy, 7 Hold, 1 Sell | $1,101.44 | +14.5% | Roth MKM Sell, $781, Aug. 6 |
| Colgate-Palmolive | 9 Buy, 5 Hold, 0 Sell | $99.77 | +7.4% | Barclays Hold, $87, Aug. 4 |
| Altria | 4 Buy, 5 Hold, 1 Sell | $71.63 | +10.1% | Barclays Sell, $58, Aug. 11 |
| Kraft Heinz | 0 Buy, 11 Hold, 3 Sell | $24.23 | -4.5% | Evercore Hold, $24, Aug. 13 |
| Monster Beverage | 10 Buy, 7 Hold, 0 Sell | $51.57 | +10.5% | UBS Hold, $53, Aug. 13 |
| Mondelez | 13 Buy, 3 Hold, 0 Sell | $70.56 | +11.1% | JPMorgan Buy, $72, July 29 |
There is a significant divide among analysts. Walmart offers a 21.7% implied upside based on its average target. Kraft Heinz ended trading 4.5% higher than its consensus target following Thursday’s surge. Broader sector momentum does not eliminate valuation risk unique to individual stocks.
Risks: Easing inflation for goods may support lower input costs, but subdued pricing could restrict sales expansion. Another oil price shock may drive up freight and packaging costs. Lighter turnover on Thursday means single-session breadth carries less weight.
Walmart is set to report earnings on August 20, in a key test of whether the sector’s overall advance signals lasting demand or just a temporary shift. So far, the stronger signal has come from smaller staples.
