New York, January 20, 2026, 15:20 ET — Regular session
Shares of Home Depot dropped 1.4%, closing at $374.87 Tuesday afternoon. The decline came amid a broad risk-off shift in U.S. stocks that weighed heavily on consumer-focused companies.
Selling intensified after President Donald Trump renewed tariff threats against Europe amid his push for the U.S. to buy Greenland. Trump announced a 10% import tariff starting Feb. 1 on goods from eight European countries, rising to 25% on June 1. Allianz Investment Management strategist Charlie Ripley described Tuesday’s move as a “contained version” of April’s “Liberation Day” shock. 1
Investors are circling back to a familiar concern with Home Depot: can big-box stores raise prices without pushing away shoppers wary of expensive home projects? Amazon CEO Andy Jassy noted that sellers have begun to “see some of the tariffs creep into some prices,” with some opting to pass those costs along while others are absorbing them. 2
A brokerage note provided minimal lift. TD Cowen’s Max Rakhlenko bumped Home Depot’s price target to $450 from $410 and maintained a buy rating, per The Fly, while adjusting targets throughout the hardlines sector. 3
Peers took a bigger hit. Lowe’s slid 3.4%, and the SPDR S&P Homebuilders ETF lost 2.2%. Meanwhile, the broader market benchmarks SPY and QQQ were both off roughly 2% in late afternoon trading.
Home Depot has pinned hopes on a housing rebound to drive bigger remodel projects, but the recovery hasn’t been straightforward. At its December investor day, the company projected fiscal 2026 comparable sales—those from stores open at least a year—would be flat to up 2%. CFO Richard McPhail noted it still hadn’t spotted “a catalyst or an inflection in housing activity.” 4
Homebuilders continue to boost demand through costly incentives. D.R. Horton revealed it ramped up offers like mortgage rate buydowns, where they cover part of the buyer’s mortgage interest. The company also cautioned that its next-quarter sales gross margin is expected to decline as these incentives remain elevated. 5
The near-term outlook could shift quickly. If tariff threats escalate into a broader trade war, import costs might spike just as homeowners cut back on discretionary projects. That would force retailers to decide between maintaining volume or protecting margins.
Home Depot’s upcoming quarterly results on Feb. 24 will be a key moment, with investors eager for details on demand trends, pricing strategies, and any initial impact from tariffs. 6
