🔴 XLY is trading 3.02% down today as Middle East escalation and energy supply shocks trigger a broad market rout

XLY is trading down 3.02% at $105.54 as intensifying geopolitical tensions in the Middle East and energy supply disruptions spark a flight to safety across global markets.

• Oil prices spiked above $107/barrel following Iran's closure of the Strait of Hormuz and Israeli strikes, raising inflation fears that pressure consumer discretionary stocks sensitive to rising input costs.
• Supply disruptions are compounded by Tropical Cyclone Narelle shutting down 8% of global LNG supply, pushing consumer confidence to its lowest level of the year amid high gas prices.
• The broader market selloff saw the S&P 500 fall 1.77% and the Nasdaq drop 2.20%, while the VIX surged 8.3% to 27.44 as investors brace for household budget cuts and economic slowdowns.