Following a year punctuated by tariffs, rising youth unemployment, and a federal government shutdown, investors entered 2026 hoping for a quieter and more stable backdrop for American consumers. That hope began to fade in late February, as the U.S. and Israel launched coordinated strikes against Iran, and the prolonged conflict that followed contributed to a sustained spike in gasoline prices. As a result, many investors are underweight consumer stocks, with concerns about higher gasoline prices compounded by strong performance elsewhere in the market.
Yet the U.S. consumer has been incredibly resilient, wrote Sharon Zackfia, CFA, partner, and group head of the consumer research sector, in The State of the Consumer: The 2026 Edition, published July 14, 2026.
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