New York, Jan 6, 2026, 15:11 EST — Regular session
Home Depot shares rose 1.5% on Tuesday, tracking a broad market advance as investors waded back into rate-sensitive retail names. The stock was up $5.10 at $349.19 in afternoon trading after swinging between $338.11 and $349.27.
The gains came as U.S. stocks extended a strong start to 2026, with the Dow set for another record as chip shares rallied on fresh AI optimism. Investors are also looking ahead to this week’s labor data for clues on the path of Federal Reserve interest rates. 1
Rival Lowe’s gained about 1.0%, while the SPDR S&P 500 ETF was up about 0.6% and the SPDR S&P Homebuilders ETF added about 0.6%. Home improvement retailers and housing-linked stocks often move with shifts in rate expectations because borrowing costs shape demand for remodeling and big-ticket projects.
Bond yields stayed elevated, with the benchmark 10-year Treasury yield around 4.18%, a level that feeds into mortgage rates and home-equity borrowing costs. Higher yields can cool housing turnover and curb spending on larger renovations — a key driver of Home Depot’s sales mix. 2
Home Depot last month laid out a preliminary fiscal 2026 outlook that assumes the home improvement market ranges from a 1% contraction to 1% growth. The retailer forecast comparable sales — sales at stores open at least a year — would be flat to up 2%, with adjusted earnings per share, or EPS, rising a flat to 4%; chief financial officer Richard McPhail said “pressures in housing will correct.” 3
Even after Tuesday’s rise, market data show Home Depot has traded between $326.31 and $426.75 over the past 52 weeks, leaving the stock about 18% below that high. The distance from the peak keeps attention on whether a drop in borrowing costs can restart housing turnover and lift demand from both do-it-yourself shoppers and professional contractors. 4
But the near-term setup cuts both ways: a stronger run of economic data could keep yields high, prolonging the “lock-in” effect in housing and delaying a rebound in big-ticket projects. Any sign of heavier promotions or slower Pro demand would also test the company’s 2026 framework.
Investors next focus on U.S. labor-market data, including Wednesday’s Job Openings and Labor Turnover Survey and Friday’s employment report for December, due at 8:30 a.m. ET on Jan. 9. Any surprise in those releases could swing rate bets — and housing-sensitive stocks such as Home Depot. 5
