Higher interest rates aren't just hitting consumers' wallets. They're also taking a toll on some major consumer stocks.
As borrowing becomes more expensive, shoppers are pulling back, especially on big-ticket purchases.
RELATED STORY | Consumer confidence hits 12-year low as prices squeeze voters weeks before midterms
The S&P 500 Consumer Discretionary ETF has fallen roughly 8% as interest rates have climbed. The fund tracks the performance of many consumer-focused U.S. companies.
Home Depot shares are down 18% this year, while Lowe's has fallen 25%. And it's not just home improvement retailers feeling the pressure. Tesla shares have dropped 17% since the start of the year as higher borrowing costs weigh on vehicle sales.
RELATED STORY | US stocks rise to a record on expectations for companies to make even fatter profits
Despite those challenges, the broader U.S. stock market continues to reach record highs, even amid concerns about war, inflation and consumer spending.
On Tuesday, the S&P 500 gained 0.6%, while the Dow Jones Industrial Average added 253 points, or 0.5%.
While these numbers are helping investors, Americans overall are struggling to keep up with the cost of living.
"If you are an individual living on Social Security or working a minimum wage job, you can't," one American told Scripps News. "You're having to make a decision. Gee, do I pay the power bill or do I buy groceries?"
In September, consumer confidence fell to 81.9. That's it's lowest since 2014.
